Pros And Cons Of Balanced Budget Amendment

Introduction The United States has had a growing Federal debt that lawmakers refuse to control; thus, a balanced budget amendment needs to be enacted to force federal lawmakers into action. The current debt to the penny amount for the United States is $ 21,065,155,853,968.88 as of March 22, 2018. As seen in Figure 1 below, the Federal debt was just under six trillion in 2000, in a matter of 18 years that debt has tripled to over $21 trillion dollars. This debt is continually growing due to irresponsible policies and spending at the Federal level. As evident in the growing debt due to deficits each fiscal year, Federal lawmakers advocate to reduce spending and attach the Federal debt, but neither political party that is in power has enacted

Due to ongoing increases in growing deficits that contribute to the growing National Debt, there has been continued discussion to implement a balanced budget. There are both positives and negatives for enacting such an amendment that has been laid out by many scholars. Additionally, there has been an alternative to a balanced budget amendment and that is to enact procedural rules. There are two metaphysical arguments against a balanced-budget amendment and that such an amendment would harm the economy. First the Keynesian stabilization policies for economics that centers around changing economic direction in respect to the status of the economy. Keynesian theory includes aspect of increasing deficits and implementing tax cuts in a recession to generate revenues and employment; but, in times of economic booms implement higher taxes and reduce deficits to help stabilize the economy. This would allow the economy to work towards growth and low unemployment. Thus, the shift to the Keynesian model of economics occurred in the 1940’s because of the promises of achieving the goals of a growing economy and low unemployment rate. Therefore, a balanced budget would hinder these objectives because it would go against having deficits and adding to the growing National

Article 1, section 9, clause 7 of the Constitution states: ““No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of Receipts and Expenditures of all public Money shall be published from time to time” and such power rests with Congress. However, the Constitution does not outline any instructions on how to do administer this power or guidelines on implementation.

Federal Budget Legislation The budget Federal budget process is currently governed by several different pieces of legislation. This legislation includes: Anti-Deficiency Act 1870; Budget and Accounting Act of 1921, Congressional Budget and Impoundment Control Act of 1974; Budget Enforcement Act of 1990 ; 2011 Budget Control Act ; and No Budget, No Pay Act of 2013. These key legislative authorities govern the various aspects of the Federal budget and have tried to address spending, but have not accomplished their intended