New Legislative Body - Super Congress

[Kasz216]

Rath said:

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.

The balanced budget ammendment has a provision allowing for that.