Posts Tagged ‘ balanced budget amendment ’

5 Reasons Why a Balanced Budget Amendment is a Very Bad Idea

Since the talks on the debt ceiling have hit an impasse, Republicans have turned their attention to a particularly destructive way to score some cheap political points. They have proposed solving our current debt problems by putting a “Balanced Budget Amendment” (BBA) in the Constitution which would require (according to the bill proposed on March 31) :

  • Every budget passed by Congress to have expenses less than the revenues for that year
  • Total outlays to be less than 18 percent of the country’s GDP
  • No tax increases
  • The above provisions may only be overruled by a 2/3 vote of both houses of Congress
  • The debt limit can only be raised by a vote of 3/5 of Congress
  • If the US is engaged in a military conflict, 3/5 of Congress can vote to deficit spend on funds for the war.

Though at first glance it may have some appeal, this amendment would be disastrous for the US economy and would further cripple the already weak and dysfunctional US government. Why? Here’s why: Continue reading