Balanced Budget

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Recommended: Introduction to debt crisis

Thomas Jefferson once stated, "I place economy among the first and most important virtues, and public debt as the greatest of dangers. To preserve our independence, we must not let our rulers load us with perpetual debt" (Bussing-Burks, 7). A lot has changed since Jefferson was President two hundred years ago, but the need to be financially solvent is something that will always be necessary for the United States to maintain its leadership position in the world. The United States of America currently owes $16.7 trillion in debt primarily as a result of the government’s spending practices during the last ten years. Two wars, several fiscal collapses, the bursting of the bubble in the housing market, looming medical care costs from an expanded healthcare access law, and a recession may be the scapegoats, but the real issue is fiscal irresponsibility by the parties in power (Hiber, 76). One idea that has been discussed not only in Congress, but also on prime time news networks is the passage of a Balanced Budget Amendment, which would require that Congress balances the country’s budget every fiscal year (American Government, 1). A Balanced Budget Amendment could provide an exception for times of war, national emergency, or recession, or allow the legislature to suspend the rule by a supermajority vote (Lee, 2). A balanced budget is critical because budget deficits can only be funded by additional increases in the level of the national debt, which can place an undue burden on future generations to repay such debt, create annual interest costs that consume an increasing portion of tax revenues and crowd out spending on current programs, and result in potential reliance on other countries in order to make financial ends meet. At the tim... ... middle of paper ... ... country’s political leaders to recognize that the spiraling level of debt is a problem that is likely to impact future generations. Works Cited Bussing-Burks, Marie. "The National Debt: Need To Know." American Government. ABC-CLIO, 2013. Web. 21 Oct. 2013. Calleo, David P. The Bankrupting of America: How the Federal Budget Is Impoverishing the Nation. New York: W. Morrow, 1992. Print. Fisanick, Christina. Debt. Detroit, MI: Greenhaven, 2010. Print. Hiber, Amanda. The Federal Budget. Farmington Hills: Greenhaven Press/Gale Cengage Learning, 2010. Print. Lee, Mike. Why a Balanced Budget Amendment is Necessary to Restore Constitutional Government. Washington, D.C: Regnery Pub, 2011. Print. Linfield, Leslie E. Budget: It's Not a 4 Letter Word. Portland, ME: FLA, 2005. Print. "The Sequester Arrives: Background." American Government. ABC-CLIO, 2013. Web. 10 Oct. 2013.

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