Final answer:
It is false that the federal government finds it easier to balance the budget than state governments as state governments often are required to balance their budgets by law, while the federal government has more fiscal and monetary policy tools. Federal spending has grown over time, personal income tax constitutes the majority of revenue and defense spending isn't at an all-time high. The arguments for and against a balanced federal budget involve issues of fiscal responsibility versus economic flexibility.
Step-by-step explanation:
The assertion that balancing the budget is easier for the federal government than for state governments is false. The federal government has more flexibility in managing its budget, as it can run deficits and has control over monetary policy, unlike state governments which are often required by law to balance their budgets. When it comes to federal spending and budget matters, it is important to consider:
Federal spending has indeed grown substantially in recent decades.
The U.S. government controls a smaller share of the economy compared to other nations.
The majority of federal revenue comes from personal income taxes.
Education spending is typically higher at the state and local level than the federal level.
State and local government spending has also increased, though not as substantially as federal spending.
While defense spending is significant, it is not at its historical peak.
The share of the economy going to federal taxes has not increased substantially over time.
Foreign aid constitutes a small fraction of federal spending, roughly 1%.
Federal deficits have varied with periods of both surplus and deficit in the past two decades.
The accumulated federal debt as a percentage of GDP is substantial, but not at an all-time high.
Arguments for and against a balanced federal budget requirement also exist. Those in favor might argue that it forces fiscal responsibility and reduces national debt, whereas those against could claim it reduces fiscal flexibility and the ability to respond to economic crises with expansionary fiscal policy.