The Need for Balanced Federal Budgets

Abstract

It should be the policy of the federal govern ment to aim always for a balanced budget or financial stability will be upset. To balance the budget, action should be taken to reduce or end some federal programs which we have been acquiring in the past thirty years. The compensatory theory of federal spending has not been successful until now and offers little hope for the future unless there is control in the growth of federal spending. We should not initiate programs as tem porary expedients during times of recession since they create great problems in future years. Although we must accept deficits when the country is in a national emergency, we should later create equivalent surpluses to offset deficits caused by the emergency. It is, therefore, necessary to pay as we go if we want to reduce the national debt and taxes. It is also neces sary to plan for budgetary surpluses in good years if we do not want to extend inflation in the future.—Ed.