Balanced budgets are in the news these days, specifically Arkansas' requirement to have one. Unbalanced budgets are also in the news today. Specifically, the United States will spend a ton of money this year to get the nation through the coronavirus crisis.
Few times in this nation's history has a better argument been made against a Balanced Budget Amendment. The year 2020 should be taught in constitutional law classes.
The state of Arkansas requires a balanced budget, which is why the special session. The federal government, however, needs more elbow room in times of emergency. And covid-19 certainly presents an emergency.
Those who have championed a Balanced Budget Amendment over the years call themselves conservatives. But if they had their way, a new constitutional requirement to balance the budget would be anything but conservative. It would be radical. And radically bad. Instead of standing on experience--on reliable observation and experience--an amendment requiring a balanced budget relies on theory. The theory being if balancing a budget is good for families, and it is, it should be good for a national government.
Now that businesses have closed from New York to California, and tax receipts are drying up, and people aren't buying gas (and paying gasoline taxes) and the unemployment rate is inching up, soon to be ratcheting up, imagine how the nation's problems would be compounded by a federal government cutting spending.
Instead of buying more emergency equipment for hospitals, the feds would be looking for places to make cuts. Instead of increasing unemployment funding, the feds would be looking for places to make cuts. Instead of stimulating the economy (hopefully) with checks of $1,200, the feds would be looking for places to make cuts.
Imagine the feds saying the government could provide needed ventilators to hospitals--but it'd have to cut Social Security checks first. Or lay off the 101st Airborne. Or shut down VA clincis.
Instead of social distancing, Americans would be talking about riots.
So what are the arguments for a Balanced Budget Amendment, not to be confused with a balanced budget?
Here are a few:
• A few years ago, a congressmen from out west--a Republican--said a Balanced Budget Amendment would be simple, easily understood and would "put this government back in its proper role."
This government's role under this Constitution is to provide for the general welfare, ensure domestic tranquility and provide for the common defense. As far as being simple, there's a difference between simple and simplistic.
• Most BBA proposals include a provision that a super-majority could approve a waiver in emergencies.
This past week has shown what a minority party in Congress can demand if it has a crisis on its side. Imagine 30-some-odd senators holding a depression over the heads of their colleagues if their demands aren't met.
• The nation is in a debt spiral. A Balanced Budget Amendment would end that.
A debt spiral is indeed scary. One day all these dollars the government is printing won't be worth as much, thus inflation. And nickels will starting costing 50 cents. But as bad as a debt spiral sounds, it doesn't sound as bad as an unemployment spiral.
A Balanced Budget Amendment would handcuff the federal government at exactly the wrong times. Such as during pandemics. Or economic recessions. An amendment would slow recoveries (because employment wouldn't rise as fast) and make downturns worse and longer. Or require the federal government to increase taxes just when the nation needs it the least.
Besides, how would such an amendment be enforced? Would the courts get involved to increase taxes or cut spending when deficits are projected? For those who think judicial power has expanded in the last 233 years, what would such an amendment do to expand the third branch of government? Oh, what crimes could be committed in the name of fiscal responsibility!
This covid-19 crisis is going to teach mankind many lessons as the weeks go on. Let's hope it teaches a lot of lessons to our political class, too. For even though a Balanced Budget Amendment remains a popular idea, that doesn't mean it's a good one.
Editorial on 03/29/2020