Leading Economists Oppose Balanced Budget Amendment

July 19, 2011 at 1:44 pm

A group of leading economists, including five Nobel Laureates, today publicly released a letter to President Obama and Congress opposing a constitutional balanced budget amendment.  The letter, which the Economic Policy Institute and the Center on Budget and Policy Priorities organized, reads in part:

While the nation faces significant fiscal problems that need to be addressed through measures that start to take effect after the economy is strong enough to absorb them, writing a requirement into the Constitution that the budget be balanced each year would represent very unsound policy.  Adding additional restrictions, as some balanced budget amendment proposals would do, such as an arbitrary cap on total federal expenditures, would make the balanced budget amendment even worse.

The signatories are Nobel Laureates Kenneth Arrow, Peter Diamond, Eric Maskin, William Sharpe, and Robert Solow; Alan Blinder, former Vice Chair of the Federal Reserve; and Laura Tyson, former Director of the National Economic Council.

Here’s the full text of the letter.

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1 Comments Add Yours ↓

Comments are listed in reverse chronological order.

  1. tedbohne #
    1

    a balanced budget amendment would end “printing money” out of thin air, and would force the republicans to find other sources to give free money to Corporate America, and it’s arms industry. The same is true of the wars, and the lavish pay and perquisites these subhumans allow themselves. the only other way would be to increase taxes on the middle class, cut entitlements, and other purely austere measures. this demonstrates a cold hatred of the average american, and utter contempt for the principles of democracy. clearly this arena has no place for the considerations of the people. The Bush catastrophes in 2000, and 2004 demonstrate how useless their vote is, and how easily it can be manipulated.

    tedbohne
    N321MM@msn.com



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