Question

In the Keynesian view, would a constitutional amendment that would require the federal government to balance its budget (incur no deficit) be desirable? Explain your answer.

Answer 1

In the Keynesian view, incorporates a balanced budget amendment into the U.S. would be beneficial. Constitution. It wouldn't guarantee government wouldn't be taxing and spending more. But it would impose greater clarity and transparency on the fiscal dimension of government decision-making, which would make it much harder for those offering other people's money in exchange for votes to do so without also having to explain who would pay for the favors and privileges given to some and how much they would have to pay. Instead of adding such a change to the Constitution, Congress must not give up its power to increase the federal debt limit. While increasing the debt cap has become more or less a rubber stamp after a number of congressmen make some verbal objections to more public borrowing, if Congress ever had enough pressure from voters to say, "NO," that very act would impose a balanced budget on the federal government.

Combined with a strong educational and political campaign to revive the principles and ideals of individual freedom and limited government, this can bring to a halt the apparently unlimited growth in government size and scope.

Once stopped, a drive to reverse the size and scope of the Big Government can begin to restore a society of freedom based on individual rights and economic freedom.