tag:blogger.com,1999:blog-7658874470833994309.post6741812507404794591..comments2023-10-20T10:46:21.208+01:00Comments on Knowing and Making: Why Obama should propose a Balanced Budget AmendmentLeigh Caldwellhttp://www.blogger.com/profile/16150868700502562500noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-7658874470833994309.post-29169511407690093122011-10-17T12:57:04.241+01:002011-10-17T12:57:04.241+01:00No I dissagree whit you, there are way to many pro...No I dissagree whit you, there are way to many problems around it if he would do that!Jameshttp://vegetarischerecepten.orgnoreply@blogger.comtag:blogger.com,1999:blog-7658874470833994309.post-47561886654893793872011-08-16T21:14:32.362+01:002011-08-16T21:14:32.362+01:00There is no way to realistically get Congress to t...There is no way to realistically get Congress to think over ten years. The mechanism would either be gamed to sweep problems under the rug until 2 years out and/or accumulate until you run into the equivalent of a gigantic debt-ceiling crisis where the last 10 years of accumulated error would come crashing down.<br /><br />On the other hand, this might be a genius political idea: attaching Obama&Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7658874470833994309.post-32636214065431574982011-08-15T13:34:09.494+01:002011-08-15T13:34:09.494+01:00Hi Leigh-
It sounds good on the surface but a bala...Hi Leigh-<br />It sounds good on the surface but a balanced budget amendment is no different than the Grover Norquist pledge to never raise taxes ever. How can you sign on to something that is static in nature especially in a dynamic economy? You say enabling investment but as you know when we give the purse strings to Congress they tend to think its their money. They will never approve to any JayTraderhttps://www.blogger.com/profile/03083309941675377474noreply@blogger.comtag:blogger.com,1999:blog-7658874470833994309.post-39465099287218069872011-08-14T20:07:49.315+01:002011-08-14T20:07:49.315+01:00Exactly - that's why I propose doing it over t...Exactly - that's why I propose doing it over ten years, not one, and why I suggest that countercyclical investment programmes are built into it. The proposal is in fact about enabling investment at exactly the times it is needed, by creating a credible commitment to long-term balance.Leigh Caldwellhttps://www.blogger.com/profile/16150868700502562500noreply@blogger.comtag:blogger.com,1999:blog-7658874470833994309.post-28639451458241702782011-08-14T20:01:13.338+01:002011-08-14T20:01:13.338+01:00The Big problem with a balance budget amendment is...The Big problem with a balance budget amendment is that policy then becomes inherently pro cyclical. During times of contraction policy would be to lower taxes and reduce spending. These are times when you need spending to make up for lack of demand in private sector. During times of expansion, we would need less spending and more taxes. BBA thus would get monetary/fiscal policy in reverse.JayTraderhttps://www.blogger.com/profile/03083309941675377474noreply@blogger.com