General Discussion
In reply to the discussion: I would like some opinions please..... [View all]WCGreen
(45,558 posts)have obligations that have to be taken care of in order to keep our society running somewhat smoothly. If the budget was, by law, to be in balance then what would happen to say the military or the flood relief or the welfare of people which, btw, assures at least a somewhat peaceful society, if there were a drop off in revenue due to an economic downturn.
If the government goes down then the basic rules of our society will fall down.
Another for instance the courts would go away, the prison system would be at risk. If the government can't borrow, because that is basically the only way to have a balanced budget year by year, what happens if the revenue falls short for one month to the next.
There are all sorts of practical reason such as how to insure just basic continuity in service to no Social Security, even for those who have already paid into the program. But the government borrows every day on short term bonds just to get through money crunch times.
If there were to be a balanced budget required, they couldn't really borrow because you are basing what you need on a day to day basis with what you are EXPECTING to come in in the short term. That inevitably results in deficit spending from one fiscal year to the next.