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Introduction
Balanced budget Cheap Nike NFL Jerseys , especially in the assessment of the government budgets, is used about the budgets that have equal revenues as well as expenditures. The assertion, in this case, is that there are neither budgets deficits nor surplus Cheap NFL Jerseys , with the accounts being in the balance. Among the main issues that support the introduction of the balanced budgets include the assertion that it would lead to a decrease in the interest rates, and thus allowing businesses as well as individuals to invest. There is the additional assertion that it would result in the shrinkage of the trade deficits, the issue of increasing the savings and investments that offer security to people being one of the issues calling for the adoption of the balanced budgets. Those arguing against the introduction of the balanced budget assert that the rigid support of a balanced budget leads to economic downturns, worsening the economic situation of a country. It is through the assessment of these issues that the paper is going to encompass an evaluation of whether it is prudent for the US government to adopt a balanced budget especially in addressing the case of the growing deficits.
The current situation in the US has seen the debate on the deficit subject continue to dominate the national discussions in the country Cheap Jerseys From China , with a section of the population demanding that amendments are made to the constitution to allow for the addition of the balanced budget clause. Through this amendment, the US would ensure that they do not spend more than they have budgeted income for the whole year. It is a common issue that most states, as well as countries, have adopted the approach Cheap Jerseys , integrating the balanced budget provisions in their constitutions (Peck, 2014). According to the supporters, the amendment would compel the federal government to be responsible for its expenditures, with an emphasis being given to the issue because the diverse attempts by the Congress to cut down the national debt have repeatedly failed (Afonso & Sousa Wholesale Nike NFL Jerseys , 2012). It is additionally evident that critics of the balanced budget assertion believe that the introduction of such a provision would result in major constraints on economic growth. According to them, the situation would be worse in the periods of recession or when tax revenues have reduced and more people depending on the government for social welfare benefits.
An additional element of the debate has been seen the supports of the budget balance contend that the future generations should not suffer due to the deficits that have accumulated by the earlier generations through the unguarded spending. The contestants, on the other hand, believe that the introduction would limit the ability of the future policymakers to adopt fiscal policies that address the challenges posed by recession and national emergencies.
The Harm to the Economy
Overall Wholesale Kids NFL Jerseys , the US would not be harmed by introducing the balanced budget more than the situation is in their current structure especially regarding their deficit. By introducing the proposed balanced budget, it would be impossible to deal with the nation鈥檚 long-term fiscal challenges. The position is that the adoption of the balances would result in a major threat the US鈥檚 economic challenges especially in the issues of managing the social security as well as the other federal functions. The adoption of the balanced budget approach would raise a hoard of serious economic challenges (Armingeon & Baccaro, 2012). Through the adoption of the balanced budget approach annually, regardless of the condition of the economy Wholesale Youth NFL Jerseys , the approach would elevate grave risks of tipping the already weak economy into recession. The implication is that the recessions would be longer as well as deeper for the US which would consequently cause major job losses. The results are because the balanced budget approach would compel the US policymakers to raise taxes, cut spending, and in other cases both at the time the economy is weak moreover in the form of recession.
On those instances that the economy is slow, the prevailing trend is that the federal reserve either decline or grow slowly Wholesale Womens NFL Jerseys , with the spending on unemployment insurance along with the other social programs going up, with the implication being an increase in the deficits. Instead of the normal situation whereby the automatic stabilizers would kick regarding the lower tax collections and higher rates of unemployment and other benefits cushioning the weak economy, adopting the balanced budget would lead to a situation where policy makers are forced to cut the spending and raise taxes (Eslava, 2011).

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