Constitutional amendment mandating a balanced budget
To place this matter in perspective, deficit spending as a deliberate Government policy was initiated by the Administration of Franklin D.
Surely, Nancy Pelosi and Harry Reid aren't off the balanced budget band wagon because they share some conservatives' It's important to stress that Senator Lee's balanced budget amendment legislation and facsimiles aren't panaceas. But to rely mainly on Congress, which is composed of men and women who, generally speaking, are parochial and self-obsessed, to legislate the national government into boundaries that more closely approximate the pre-FDR era is a reach.The Federal debt will reach $4 trillion before the end of this year.If the Government were a private entity, it would have been declared insolvent a long time ago. If investors got the impression the Federal Reserve was creating excessive amounts of fiat money, they would likely lose faith in Government obligations.The two-thirds requirement in Senator Lee's proposal is a tangible brake on spendthrift government and trigger-happy congressional taxers.Simple legislative majorities are hard to get ordinarily but How much of Mr.To the Editor: "Unbalanced" (editorial, May 10) predicts terrible consequences if a constitutional amendment mandating a balanced budget were to be adopted.
This prediction reminds one of a drug addict's forebodings about the harmful consequences that would supposedly follow in the wake of giving up the drug habit.
The realities confronting us today are quite different.
The real operating budget deficit of the Government will exceed $500 billion in 1992.
In contrast, balancing the Federal budget would put the country in a favorable position to solve its problems.
This approach would reverse all the harmful consequences that have resulted from chronically huge budget deficits.
The only thing that stands between the Government and bankruptcy is the Federal Reserve's ability to create new money by fiat. Bond prices would collapse and interest rates would soar.