Read/review the following resources for this activity:
Textbook: OpenStax. (2019). Principles of economics (2e). OpenStax CNX. Retrieved from https://openstax.org/details/books/principles-economics-2e
Textbook: Chapter 27, 28, 30
Minimum of 1 scholarly source (in addition to the textbook)
Link (website): U.S. National Debt Clock (Links to an external site.) https://www.usdebtclock.org/
The federal debt is symptomatic of the nation’s persistent budget deficits as the national debt is the accumulation of budget deficits. Deficits grew steadily during the Great Recession when there was a significant shortfall in government revenue, which required that the government pursue an expansionary fiscal policy to stimulate the economy. The recession is now over, but the Trump administration, continues to pursue deficit spending. In a contribution to Forbes magazine, Chuck Jones (2018) points out that the U.S. Federal deficit was $587 billion in Obama’s last year in office, and it grew to $666 billion in the first year of Trump’s presidency. The Trump Administration’s Tax Reform plan and the two-year bipartisan budget, which passed in February 2018, are estimated, by many accounts, to cause the federal deficit to exceed 1 trillion dollars by 2020 (Jones, 2018). The implication of this growing deficit is a further increase in the national debt.
From 1965 to through 2019, there has been a persistent increase in the federal debt. This trend became more pronounced during (and in the aftermath of) the recession of 2008-2009. As shown on Figure 1, in September of 2017, for example, the national debt rose to 20.24 trillion U.S. dollars. This disturbing increase in the federal debt is likely to increase the per capita debt burden for each American citizen. According to Statistica (2018), if the debt owed in 2016 were distributed to every American citizen, the amount owed per capita would be 60,470 U.S. dollars. The current figure is available at the U.S. National Debt Clock website.
Initial Post Instructions
For the initial post, address the following:
Do you agree that the constitution should be amended to include a balanced budget requirement? Why or why not?
If you agree with a constitutional amendment, can you identify one reason why some people may be opposed to it? What proposals would you make to allay the concerns of those people?
If you disagree with a constitutional amendment, can you identify a line of argument – made by the proponents of the constitutional amendment – that you find compelling? What do you find persuasive about that line of argument?