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arlik [135]
2 years ago
14

Should the United States pass a balanced budget amendment? Explain your answer.

Business
2 answers:
Xelga [282]2 years ago
6 0

Explanation:

No, because sometimes the government needs to spend more than it takes in.

To give a singular example, if there was a balanced budget amendment in place during World War II, the United States would have been completely unable to fight the war. Financing the war effort without borrowing would have imposed an extraordinary and unsustainable tax burden upon the American people at a time when the U.S. economy was still recovering from the Great Depression. The United States spent dramatically more than it took in during World War II.

But that’s just one example. There are things you cannot budget for, like natural disasters, epidemics, wars, and financial crises. When these arise the government needs flexibility to respond to them. To explicitly deny the government that flexibility is outright lunacy. It’s the opposite of a good policy. It’s a disaster waiting to happen.

In addition, it’s important to understand that government tax revenue is not always stable and predictable. Congress could pass a budget that appeared to be balanced on the day it was passed, and two months later a major recession could begin. The resulting job losses and economic contraction would drive tax receipts down below previous projections, meaning the government would now be spending more than it took in under a budget that was presumed to be balanced before the recession began. And if the government had to immediately curtail already-approved spending to bring the budget back into balance, the resulting drop in government services would worsen an economy already in recession, driving tax receipts down further and requiring further automatic cuts.

This is just bad policy. It is, frankly, an absolutely terrible idea.

It is entirely reasonable to debate the amount of debt the government should be incurring at any particular point, and to consider the long-term implications of that debt and establish plans to prevent it from becoming unduly burdensome. This is a reasonable political debate and people can realistically disagree on how much the government should be spending and how much it should be taking in and what the difference between those numbers should be. It’s a perfectly valid position to believe government debt has gotten out of control. I’m not arguing with that proposition, and have no interest in doing so here.

But there’s a difference between saying, “We have too much debt,” and saying, “The government is forbidden from ever borrowing money again.” Only one of those positions is intellectually defensible.

A constitutional requirement for a balanced budget, especially one with no exceptions or limitations as is proposed in this question, is about a bad an idea as you could possibly come up with.

ZanzabumX [31]2 years ago
3 0

Answer:

There is no balanced budget provision in the U.S. Constitution, so the federal government is not required to have a balanced budget and Congress usually does not pass one. Several proposed amendments to the U.S. Constitution would require a balanced budget, but none have been enacted.

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Oscar has negotiated a lease for his sporting goods store in which he is required to pay $2,500 per month in rent. Oscar pays hi
AfilCa [17]

Answer:

The Oscar's fixed costs per month is $2,500

Explanation:

Fixed cost: The fixed cost is that cost in which the amount is remain fixed whether production level change or not, that means it does not have any effect on the production level.

In the given question,

Monthly rent is $2,500 which is fixed so, it would be considered as fixed cost

The per hour pay and electrical bill depend upon the total hours of operation which means if the more hours, the workers are engaged so more pay will be give to them, and more electricity bill come.

And if they are working few hours, than less rate and less electrical bill will be there which reflects the variable cost. So, these cost are considered variable cost. Thu, it would not be included in the fixed cost.

Hence, Oscar's fixed costs per month is $2,500

6 0
3 years ago
What is the primary way in which insurance allows you to be covered for a loss, even if you haven't had it for very long?
Viefleur [7K]

C. You share the risk with others.

4 0
3 years ago
Read 2 more answers
In which statement(s) are "demand" and "quantity demanded" used correctly? (I) "An increase in the price of tea will reduce the
ryzh [129]

Answer:

The correct answer is letter "A": in both statements I and II.

Explanation:

(I) According to the demand law, <em>if the price of tea increases the quantity demanded of tea will decrease</em>. If the price of tea decreases, the quantity demanded of tea will increase. Quantity demanded and the price has an inversely proportional relationship in the demand law.

(II) When talking about complementary goods like tea and sugar, <em>if the price of tea increases will result in a negative movement along the demand curve of tea and will cause the demand curve of sugar to move inwards. In such a scenario, the demand for each good will be reduced.</em>

8 0
3 years ago
when the market demand curve crosses the long-run average total cost curve where average total costs are declining, the firm is
cluponka [151]

Answer: Natural monopoly

Explanation:

A natural monopoly is a form of monopoly that comee into being due to huge start-up costs and also economies of scale. A firm that has a natural monopoly may be the only producer of a particular good or service.

A natural monopoly occurs when the long-run average total cost curve is crossed by the markwt demand curve when the average total costs are still diminishing.

5 0
3 years ago
Measuring and reporting quality costs does not solve quality problems. Decreases in quality costs generally occur as soon as imp
Dahasolnce [82]

Answer:

True statements:

Measuring and reporting quality costs does not solve quality problems.

Quality cost information helps managers identify the relative importance of quality problems.

The impact of customer ill will is generally not found on quality control reports.

Explanation:

When the quality cost is determined and reported so the same should not solve the problem of the quality also the information related to the quality cost helps the managers to identify the significance of the quality issue

The effect of the customer could not found on the reports made for quality control

But if there is a decrease in the quality cost so the improvement programs could not be implemented soon

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