Full employment budgetary deficits

[Kushinator]

Definition: A deficit that occurs when an economy is near or at maximized economic output.

Should this type of policy be outlawed?

Discuss.

 

[imagep]

Definition: A deficit that occurs when an economy is near or at maximized economic output.

Should this type of policy be outlawed?

Discuss.

The answer is so obvious that I don't think you are going to get a lot of debate on this topic.

Yes, it should absolutely be outlawed.

 

[washunut]

The answer is so obvious that I don't think you are going to get a lot of debate on this topic.

Yes, it should absolutely be outlawed.

We can't realistically get there without many changes.

 

[drz-400]

Certain circumstances like war could be a reason for such a policy. I would by and large agree that budgets should remain counter-cylcical however. I guess what I am getting at is it should be discouraged, rather than outlawed, since special circumstances may arise.

 

[oldreliable67]

We've tried to take such an approach several times in the past. Hasn't worked yet. The closest we got was probably Gramm-Rudman, if anyone remembers that? The basic problem has been: Whatever congress can legislate, it can legislate a change or efffectively disavow, as it did with Gramm-Rudman, line-item vetos, pay-go, etc.

Our legislative history suggests that the only way to truly and effectively "outlaw" or even to define any kind of acceptable/nonacceptable deficit policy is by constitutional amendment. What do you think the chances are?

IMO: zip, zero, nada.