Balanced Budget Amendment Pros and Cons List

Thomas Jefferson once said, “We must not let our rulers load us with perpetual debt. We must make our election between economy and liberty, or profusion and servitude.”

As America’s debt and looming deficit continues to dominate the national discourse, a number of legislators are calling for a Balanced Budget Amendment to be added to the Constitution. The amendment, when successfully added, would require all states to limit their spending or expenses based on their income. This means that no state or city can spend more than what they are earning. Sounds fair, right? Some experts believe that acting on the Balanced Budget Amendment a long time ago would have prevented the current mess the country is in now. However, not everyone share this opinion. Critics argue that such amendment would hinder or constrain economic growth, especially at times when tax revenue is down and more citizens depend on the social welfare benefits offered by the government.

Is the Balanced Budget Amendment a bad thing or a good thing? Here are its advantages and disadvantages.

List of Pros of Balanced Budget Amendment

1. It controls spending.
It does not take a genius to know that the federal government has a bad spending habit. It is already in a $15-trillion-knee-deep of debt, and it goes further deep each year. If not stopped, the American economy as a whole will suffer, and American’s standard of living could drop significantly. The amendment can put a limit on spending as well the federal government’s debt accumulation.

2. Eliminate wasteful programs.
One advantage of having the amendment is that because of tight budget control, government programs will be properly evaluated to ensure spending effectiveness. It will allow the government and the congress to thoroughly check or analyze which programs are working and which programs should be cut. In other words, balancing the budget could result to wiser spending decisions.

3. It diminishes corruption.
The Balanced Budget Amendment adds accountability to expenditures because every dollar spent is scrutinized. This diminishes the ability of politicians to use the government’s money for their own personal interest. This also prevents them from adding their own pork barrel to unrelated bills.

List of Cons of Balanced Budget Amendment

1. It could turn the economy for the worse.
One of the major arguments raised against Balanced Budget Amendment is that decreased government spending can lead to significant economic downturn. They argue it can make it impossible for the economy to improve or move forward during a recession.

2. It hinders government flexibility.
In events when maximum government flexibility is needed, such as during war, terrorism, economic depression or other crisis, the amendment could narrow government’s choices of action.

3. It comes at a price.
A balanced budget cannot be achieved without painful changes. There is a big possibility that taxes could increase and social welfare services and entitlements such as Social Security, Medicare and Medicaid could be cut.

Conclusion

Whether or not the Balanced Budget Amendment is the answer to America’s increasing deficit problem, something has to be done to avoid the complete erosion of the country’s economy.