Should it be illegal to introduce a budget deficit?

[Cubus]

At least to some % of GDP.

[KrakenAttackin]

This has been discussed since budget deficits and debt began. Most states are required to have a balanced budget. The rationale for the federal government not having this responsibility is having to capacity to respond to national emergencies. The problem is the politicians (on both sides) have spent like drunken sailers in a brothel.

Politicians make financial promises to get elected and use deficit spending to appease their constituents, this is so wrong.

We do need to reign in government spending WHILE growing the economy to shrink the relative effect of our massive debt.

[OlderAndWiser]

I believe that some states have a legal requirement for a balanced budget and they seem to do fin with working within that parameter.

[Cubus]

I'm talking about federal budget

[Cubus]

I meant federal, but we can expand this to state level

[OlderAndWiser]

Yes, I just meant that if the states can live within that framework, the feds should be able to do the same.

[OlderAndWiser]

Thanks for MHO!

[Cubus]

You're welcome

[lightbulb27]

I thought it was in usa until the govt changed it's mind and started the theft/ unfair politically biased distribution machine.

yes except for war. once we do that, we plunge into massive global depression and all hell breaks loose. then we have global war... and we startup deficits again.

so what would you do?

[Avicenna]

It's unrealistic to expect a balanced budget yearly, but it should be limited to 3% of GDP, with some automatic spending cuts taking place if that's exceeded. We don't have actual budgets anymore and budgetary discipline was always lacking anyway.

[Anpu23]

You give someone a blank check they'll spend. If you put someone on a budget they'll match it. I've worked in government procurement and the attitude is if you don't spend your whole budget you lose it so you spend even if you don't need it. That attitude is where the over spending comes from.

Seriously its a great idea to force the government to underspend and use the excess to pay down debt. This is the base of fiscal conservatives.

[abc3643]

No, of course not.
That's stupid.
Think about it.
If it was, then credit cards and student loans and mortgages should all be illegal too.
What would happen?
The economy would grind to a halt.

[NamerOfStars]

No. Deficit spending doesn't have the same problem for governments that it does for individuals, since a country's never going to age out of being able to create wealth.

[Chazmatazz269]

It’s illegal to have a surplus. Why shouldn’t it be illegal to have a deficit?

[EnglishEuropean]

That horse is out of the stable. You would have to slash spending commitments.

[Lucy68]

I don't think so

[Cubus]

Why?

[jshm2]

No. It's how economies work.

[exitseven]

Yes, it would be good for the country.

[Anonymous]

No, not in my opinion.