| HappySqurriel said: With proper budgeting practices deficits are entirely unnecessary ... If you collect 5% or 10% more money that you spend and save it to ensure that spending levels can be maintained in the case of a economic shock, or increased in the case of war, and if you expend this fund you cut discretionary spending and increase taxes to cover the shortfall. |
There is no reason not to run a deficit in the face of a short term loss such as a natural disaster other than some moral problem with it. It's the sensible thing to do economically.
Edit: And in your plan to save money for a crisis - spending assets built up over previous years would still be running a deficit in that particular year.
@Viper. I agree the debt ceiling needs to be brought under control and the US needs to return to surplus. That doesn't mean the balanced budget amendment isn't a straight-jacket for the government.
