Balanced Budget Amendment Pros and Cons List
A balanced budget amendment is something that has been in the works at a federal level for quite some time. What it means is that the country would not be able to spend more money than it brings in each year. This is an effort to lower the national debt of the United States, which is reaching astonishingly high numbers. Many people argue that this is not the answer to the debt problem in the country, but would only make matters much worse. Others believe that it is a way to regulate a government’s spending in a time of desperate need. Let’s look closely at all of the pros and cons that would come with a balanced budget amendment.
The Pros of a Balanced Budget Amendment
1. Better Discipline In Spending
A balanced budget is the ideal solution to the debt problem because it would prevent the government from frivolously spending money that we simply do not have. The current debt for the United States is well above 15 trillion dollars, and something must be done.
2. Country’s Credit Rating
Just like people, countries also have national credit ratings. These greatly effect the amount of countries that want to invest with you or do any form of business with you at all. If the debt level remains where it is now, then America’s credit rating will drop and greatly impact the economy.
3. Limits New Spending
It would become a difficult process to begin new programs or funding with a balanced budget amendment. This is a great benefit, particularly with politicians. They would no longer be able to make the promises of funding or spending because everyone would know the unlikeliness of it happening. Instead the focus would be switched the the person’s character and integrity.
4. Confine The Growth of Government
The American government is a enormous machine, that many people fear is growing too large. With increased spending, inevitably, comes more agencies and government positions. This would be very limited with a balanced budget amendment.
The Cons of a Balanced Budget Amendment
1. Emergency Need
The future is very uncertain, and always will be. There is no way to detect whether or not we will have a natural disaster, economic crash, or possibly even enter into a new war. All of these things require emergency funding from the government, which may not be possible with a balanced budget amendment.
2. Major Assistance Cuts
Millions of people use government assistance programs in the United States, for all different sorts of reasons. A large portion of this federal aid would likely be cut and all of those people would have a dramatic decrease in their quality of life and the poverty level would rise.
3. Economic Collapse
One of the biggest fears associated with a balanced budget amendment is that it could cause a severe economic crisis. This is because, with government spending extremely limited, top priority things would get funding first. Many people believe that in economic hard times, government spending should, in fact, increase. This would be impossible with this amendment.