Discussion: Balanced Federal Budgets

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Discussion: Balanced Federal Budgets

Economists differ in their ideas about using government spending to stimulate the economy. Some economists follow British political-economist John Maynard Keynes in advocating increased government expenditure to stimulate the economy when it is in recession. In their view, the federal deficit will decline when the economy improves. Others favor allowing market forces to restore equilibrium when the economy is in recession. They believe that the deficit stifles economic growth and prosperity.

You can learn the policy preferences of a city, county, state, other government agency by analyzing its budget. The budget is a plan for allocating the resources required to provide specific services and address strategic priorities.

For this Discussion, review this week’s Learning Resources and focus on the implications of the federal deficit on a public organization. Then, select a position either for or against a balanced federal budget. Consider whether the gap needs to be closed or whether there are legitimate reasons for borrowing.

Post a description of your position on a balanced national budget. Justify your position for or against a balanced national budget by explaining the gains and losses associated with your position.

REQUIRED READINGS

Mikesell, J. L. (2018). Fiscal administration: Analysis and applications for the public sector (10th ed.). Boston, MA: Wadsworth.

  • Chapter 4, “Federal Budget Structures and Institutions” (pp. 154-207)
  • Chapter 5, “State and Local Budgets” (pp. 214-251)
  • Chapter 3, “Budget Methods and Practices” (pp. 106-142)
  • Chapter 6, “Budget System Reforms: Trying to Make Better Choices” (pp. 257-305)

Government Finance Officers Association. (2014). Distinguished Budget Presentation Award Program (Budget Awards Program). Retrieved from http://www.gfoa.co/sites/default/files/BudgetDetai…

OPTIONAL RESOURCES

 

Mucha, M. J. (2012, Oct). Budgeting for outcomes: Key findings from GFOA Research. Government Finance Review, 47–49. Retrieved from http://www.gfoa.org/budgeting-outcomes-key-findings-gfoa-research

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