Discussion Question

Some politicians have suggested that the United States enact a constitutional amendment requiring that the Federal government balance its budget annually. Explain why such an amendment, if strictly enforced, would force the government to enact a contractionary fiscal policy whenever the economy experienced a severe recession. Given current tax policies relative to individuals and corporations, what impact would you project such government policies will have on public acceptance of these contractionary fiscal policies? Use the articles posted in the timeline (e.g. Bartlett & Steele, (2008) and Gould & Shierholz,(2011) to support your position and explanations.