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Why hasn't Congress passed a balanced budget amendment?

Discuss any ideas for budgeting and planning your finances

Why hasn't Congress passed a balanced budget amendment?

Postby webb24 » Thu Nov 22, 2012 7:34 am

Spending money is what they exist for. Raising taxes is what scares them. It's that simple.
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Why hasn't Congress passed a balanced budget amendment?

Postby shing57 » Thu Nov 22, 2012 7:43 am

1) Obama hired Simpson and Bowels to creat a plan. Their plan was much like Romney's and they rejected the idea of raising taxes on the rich. So he created his own plan.
2) The budget Obama submitted to the house was rejected. Not one house representative voted for it. Not one democrat, not one republican. Not one time in all 4 years.
3) The budget the house worked on and passed went to the senate and senate leader Harry Reid has refused to put it up for a vote.
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Why hasn't Congress passed a balanced budget amendment?

Postby marline31 » Thu Nov 22, 2012 7:48 am

Neither party wants their ability to spend OUR money restrained...............
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Why hasn't Congress passed a balanced budget amendment?

Postby ephrayim » Thu Nov 22, 2012 7:55 am

They don't want to balance the budget. They want more money to buy votes with fancy programs to impress our society of spoiled and sheltered little children in adult bodies. The budget will never be balanced until citizens stop sucking their thumbs while crying for mommies or daddies in government to care for and protect them all ways and always.
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Why hasn't Congress passed a balanced budget amendment?

Postby johnston » Thu Nov 22, 2012 8:05 am

They don't want to balance the budget. They want more money to buy votes with fancy programs to impress our society of spoiled and sheltered little children in adult bodies. The budget will never be balanced until citizens stop sucking their thumbs while crying for mommies or daddies in government to care for and protect them all ways and always.
Because that can be a very bad thing for a country. This is an article about the last time we tried it, in the mid 1980's. http://www.nytimes.com/1987/03/03/opinion/repeal-the-balanced-budget-law.html

It is also no protection from having the government take more money. Romney liked to brag that he balanced Massachusetts budget without raising a single tax, but neglected to point out that he did it by raising fees on hundreds of other government services.

Something that sounds good for a family or a company often just doesn't work when you get to the real world of huge things and huge numbers of people.
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Why hasn't Congress passed a balanced budget amendment?

Postby ainsworth » Thu Nov 22, 2012 8:20 am

Look at what's going on in distressed countries in Europe.

Cutting spending is HURTING most citizens, and their economies can't recover, since no one has any money to spend, to drive recovery.

Saying "no matter WHAT is going on, we have to balance the budget" is the most idiotic thing anyone can say. If the economy goes south, then there is less revenue AND greater need for spending.

The time to balance the budget and pay down the debt is when we have a healthy economy, with lots of taxes being paid, and fewer government services needed.
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Why hasn't Congress passed a balanced budget amendment?

Postby dyvynarth68 » Thu Nov 22, 2012 8:29 am

deficit spending is how the government combats recession, hopefully before it becomes a depression.

if you look at Herbert Hoover, he had the last balanced budget before Clinton. That was in 1930, he felt austerity in government was needed because of the economic collapse. As a result in 1931 there was so little tax revenue, he had no alternative but deficit spending. FDR recognized that government spending had to lead recovery. from 1932 to 1938, the GDP increased dollar for dollar the same as federal spending. That was not temporary stimulus but permanent recovery, truly a remarkable investment bargain. The stimulus spending at the end of 2008 and beginning of 2009 is the reason the Bush Recession did not fall as hard as the Great Depression.

The Presidents budget is designed to reduce the deficit, but that requires both revenue (tax) increases and spending cuts. The "fiscal cliff" given to us by the Tea Party is a brute force budget reduction plan, it had the right idea but with draconian results. The Lame Duck congress will tweak the details so that we are not hit with recession again. At this point both parties want to move toward balanced budgets, probably as a 4 to 10 year plan.

The problem with an amendment is it would be impossible to write in a way to give government the tools to deal flexibly with changing economic regimens. Economists all agree that austerity is not always the best policy. Romney wanted to limit spending to a fixed 20% of GDP, but under that standard all modern Republican Presidents spent way too much, Ronald Reagan spent 22.6%.

What might be better would be to require all candidates for federal office take and pass a test in basic arithmetic. That worked for Clinton, and he balanced the budget.
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