Most of the state governments will entail their legislatures to pass a balanced budget amendment every year. One of the usual arguments for balanced budget amendment is that the congress can’t be trusted when it comes to discipline. It is very important that the congress will play a vital role particularly in amending their Constitution to properly balance their budget to avoid debt. Read more about the pros and cons of balanced budget amendment.
The Pros of Balanced Budget Amendment
Here are some of the benefits of balanced budget amendment:
1. The balanced budget amendment addresses the Chronic Deficit. In the past few years, the country of the United States are engages with running deficits for about one trillion dollars. It is a fact that there are 2 ways to enslave and conquer a certain country; the first one is by sword and the second one is in the form of debt. At this point in time, there are countries that are suffering from a large amount of debt.
2. Flaw in the Democracy. The balanced budget amendment is considered as one of the effective ways to secure the flaw of democracy since it will limit the total sum of money that usually comes from the public treasure. It is very important that most of the countries should pass and adopt the balanced budget amendment since it is the one that will immediately addresses the chronic deficit as well as the spending problems of a certain nation. The balanced budget amendment will also fix and secure the flaws in a form of limiting the total sum of money that are being taken from public treasury.
The Cons of Balanced Budget Amendment
Here are some of the problems that you will encounter when you are engage with balanced budget amendment:
1. Keynesian Economics. During recessions and depressions, the government must run the so-called surplus to cool, boom and reduce the debt of the government. It is a fact that the debt of the government is the major problem that needs an effective solution. However, the existence of balanced budget amendment is not the appropriate solution for the problem. Instead, it is a catastrophe.
2. It is useless during the time of war, emergencies and constitutional erosion. The balanced budget amendment can’t be used especially in the time of war. It is also useless during the time of constitutional erosion and emergencies. The balanced budget amendment doesn’t have the ability to solve economic health problem that most people are searching for.
3. The balanced budget amendment is a disastrous. There are companies that find hard time and difficulty to match their expenditures and earnings since it needs additional money that comes from public. Generally, the government must run a certain deficit however with the existence of balanced budget amendment, it prevents the occurrence of deficit and it is one of the reasons why it is disastrous.
How Do You Feel about Balanced Budget Amendment?
The balanced budget amendment must be properly reviewed and analyzed before they will submit it in Congress. By doing this, they can make sure that most people can make use of it particularly during recessions and state of emergencies.