According to the Center on Budgets and Policy Priorities, the Balanced National Budget amendment will force policy makers to cut down spending or raise taxes, most especially, during a time of recession, when the economy is very weak. There is a tendency for federal revenue to “decline when the economy slows or and spending on unemployment insurance and other social programs increases, causing deficits to rise.” (Greenstein & Kogan,2011) According to the Economic Policy Institute, Nobel laureates and leading economists oppose constitutional Balanced Federal Budget amendment. They argue additional restrictions, such as an arbitrary annual cap on total federal expenditures, would make a balanced budget amendment even worse. They are of the opinions, in economic downturn tax revenues fall, and some outlays, such as unemployment benefits, rise. They further argue that unlike the constitution of the State which allows borrowing to finance capital expenditures, the federal budget is completely different, it makes no distinctions between capital investment and current disbursements. (Economic Policy Institute, 2016)
However, proponents of the Balanced Federal Budget Amendment are of the strongest conviction that constitutional amendment is the right thing to do. They hold the view that future generations have a right to be protected from debts accumulated by earlier generations. They argue since the United States Congress and the President of the United States, are not willing to rein in the debt through a normal legislative process, constitutional constraint is the only way forward. (Peterson, 2016) After researching the Pros and Cons of the arguments as it relates to Balanced Federal Budget amendment, I am of the strongest conviction that a Balanced Federal Budget amendment is not the way forward. A Balanced Federal Budget amendment will create the following problems: (a) It will create a very serious problem and risks struggling economies into recession and making the recession deeper and longer. (b) It might cause very large job losses. (c) It might have negative consequence on unemployment benefits. The citizens tend to gain a lot, if the Balanced Federal Budget amendment is not successful and pass into law. Some of the benefits include the following ;( a). Struggling economies won’t risk recession and making said recession deeper and longer. (b) There might not be very large jobs losses. (c) Unemployment benefits might not be effected negatively.