Should the U.S. federal budget be balanced every year? Wouldn't this depend on the economy?© BrainMass Inc. brainmass.com October 9, 2019, 5:01 pm ad1c9bdddf
You have asked a rather complex question. It really depends on the state of the economy at any given time. Sometimes the economy is in such a poor state that it is necessary for the federal government to go over budget and spend in areas in order to encourage additional economic activity. In the short term there is nothing wrong with having a deficit. Over the long term, however, it is beneficial for the budget to be in balance.
Here is some additional information for you:
By five-year periods beginning in fiscal year 1962 and ending with fiscal year 1981, the annual deficit has averaged 0.8, 1.2, 2.1, and 2.0 percent of gross national product ...
The expert determines if the United States federal budget should balance every year.