- Mon Jul 29, 2013 10:09 am
#28105
When the Congress of the United States creates a budget with or without the signature of the President of the United States the Congress creates either a budget deficit, a balanced budget, or a budget surplus. In light of the fact that revenues are not completely predictable, the balanced budget is a fantasy. The President, as chief administrator, has the responsibility of spending the funds authorized by the Congress in the budget as described in the budget. The President may also make suggestions to Congress on items that he thinks should be included in the budget. on suggestiuonh son the budget as a whole and in detail as he sees fit. Spending bills are required by the Constitution to start in the House and be approved by the Senate. They may be passed either with or without the President's signature. The budget is a Constitutional construct.
The deficit limit is a non-Constitutional construct. As such the details of it's use may be changed by Congress at any time without approval of the people of the United States as it was created without approval of the people of the United States. It is an extremely useful construct as a tool to monitor the financial health of the United States government. Though the debt and the deficit as a fraction of the GDP and GNP are much more useful concepts. Approval or disapproval of the national debt limit does not create nor destroy debt or deficits. The budget produced by the Congress creates debt and deficits.
Failure to approve the debt limit under the current law creates nothing more than the inability of the United States Government to borrow funds and probably puts the government into default. It does not change either the debt or the deficit. It does destroy the credibility and credit of the United States government and more than likely would throw the world wide economy into a deep depression. All for a non-Constitutional administrative construct meant to make sure Congress is informed of what it is doing when it creates a budget and thereby creates either a deficit or a surplus in spending.
Deficit spending is best utilized when their is slow economic growth so as to increase investment and the economic growth rate. Surplus is best utilized when economic growth is high and surplus funds are available to buy down the debt without harming the economy.
Pushing the apple cart swiftly and strongly in any direction usually only achieves throwing over the apple cart and spilling all the apples on the ground.
The deficit limit is a non-Constitutional construct. As such the details of it's use may be changed by Congress at any time without approval of the people of the United States as it was created without approval of the people of the United States. It is an extremely useful construct as a tool to monitor the financial health of the United States government. Though the debt and the deficit as a fraction of the GDP and GNP are much more useful concepts. Approval or disapproval of the national debt limit does not create nor destroy debt or deficits. The budget produced by the Congress creates debt and deficits.
Failure to approve the debt limit under the current law creates nothing more than the inability of the United States Government to borrow funds and probably puts the government into default. It does not change either the debt or the deficit. It does destroy the credibility and credit of the United States government and more than likely would throw the world wide economy into a deep depression. All for a non-Constitutional administrative construct meant to make sure Congress is informed of what it is doing when it creates a budget and thereby creates either a deficit or a surplus in spending.
Deficit spending is best utilized when their is slow economic growth so as to increase investment and the economic growth rate. Surplus is best utilized when economic growth is high and surplus funds are available to buy down the debt without harming the economy.
Pushing the apple cart swiftly and strongly in any direction usually only achieves throwing over the apple cart and spilling all the apples on the ground.
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