Wednesday, April 25, 2012

Would a balanced budget amendment to the Constitution fix everything?

I wish. The problem is that a balanced budget amendment without loopholes would be a national suicide pact, while a balanced budget amendment without loopholes would be unenforceable.

Imagine if we'd had a no-loopholes balanced budget amendment on the day the Japanese bombed us into WWII. Imagine if we'd has a with-loopholes balanced budget amendment any time whichever party was in control wanted to spend more.

Sorry about that. I like the idea of a balanced budget amendment, and most states have one. But states aren't countries.

Note that very few corporations could survive with a balanced budget requirement. Ford would have gone under. It had to borrow $25 billion to not go under when the mega-recession hit. It had to spend waaay beyond its means to get back in the saddle.

Trick is, it spent smart, putting the money into good new products mostly.

Ditto with nations. Spending smart is what's needed.

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