Question

In a short essay of at least two paragraphs, first explain what you think the benefits of requiring a balanced budget would be. If you don't see any benefit to such a requirement, then explain that instead and fully explain your reasons to support your opinion. In the second paragraph, analyze the effects the national debt has on our economy. Your reasons must be logical and detailed and must support your opinion.

Answer 1

I think the benefits of requiring a balanced budget would be that so many companies would not be going under. Here is some statistics of the companies that went under in 2008.

Announcement date Acquired company Value (USD, EUR and GBP)

September 18, 2008 HBOS $21,850,000,000

September 26, 2008 Washington Mutual, Seattle, Washington $1,900,000,000

September 26, 2008 Lehman Brothers $2

September 28, 2008 Bradford & Bingley £612,000,000

It would also help them have more space for workers since they can set aside some money for new workers if they absolutely need it!

In the short run, the economy and voters benefit from deficit spending. It drives economic growth. The federal government pays for defense equipment, health care, and building construction. It contracts with private firms who then hire new employees. They spend their government-subsidized wages on gasoline, groceries, and new clothes. That boosts the economy. The same effect occurs with the employees the federal government hires directly. As part of the components of GDP, government spending takes a huge chunk, most of which is allocated to military expenditure.