A Pollution Control Approach to Analysis of the Balanced Budget Amendment
American Journal of Economics and Sociology, Vol. 47, No. 4, October 1988
4 Pages Posted: 4 Aug 2011
Date Written: 1988
Fiscal Pollution (excessive budget deficits), in certain aspects, is like environmental pollution. In both types of pollution some, possibly most individuals would be willing to reduce their own pollution if others would do the same. In the case of fiscal pollution individuals would be willing to give up their special interest demands if others would reciprocate in kind. But as long as individuals are forced to pay for the programs of others there is little incentive to reduce their own demands. Hence, restraints on political behavior such as a balanced budget amendment to the U.S. Constitution are needed to control excessive fiscal pollution.
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