Economics Homework Help

Can Congress and the President Ever Balance the Federal Budget?

Due Date: Day 6

Read: the description of public choice theory: “Public Choice” at http://www.econlib.org/library/Enc/PublicChoice.html. (Links to an external site.) If you need more information, check out: “Public Choice Theory” at http://www.econlib.org/library/Enc1/PublicChoiceTheory.html (Links to an external site.)

Read: “The Balanced Budget Amendment Debate “: at https://www.thoughtco.com/balanced-budget-amendment-3368271 (Links to an external site.) and “Balanced Budget Amendment: Pros and Cons “ at https://www.pgpf.org/budget-basics/balanced-budget-amendment-pros-and-cons (Links to an external site.)

Read: You may want to read the following articles about the recent debt ceiling crises: “The Federal Deficit Mess—Posner” at http://www.becker-posner-blog.com/2011/07/the-federal-deficit-messposner.html (Links to an external site.); and “Short and Long Term United States Fiscal Crises-Becker: at http://www.becker-posner-blog.com/2011/07/short-and-long-term-united-states-fiscal-crises-becker.html (Links to an external site.); “The Depression, the Deficit Debacle, and the Debt-Ceiling Crisis—Posner” at http://www.becker-posner-blog.com/2011/08/the-depression-the-deficit-debacle-and-the-debt-ceiling-crisisposner.html (Links to an external site.); “Immediate and Medium Term Debt and Deficit Problems-Becker” at https://www.becker-posner-blog.com/2011/08/immediate-and-medium-term-debt-and-deficit-problems-becker.html (Links to an external site.)

Read: You may also want to read: “Fiscal reform – Why we’re hosed” at http://www.economist.com/blogs/democracyinamerica/2011/08/fiscal-reform (Links to an external site.)

Post: your answers to the following questions:

• Define Public Choice Theory.
• Using Public Choice Theory, explain why it is so difficult for Congress to reduce the budget deficit.
• Do you agree that there needs to be a balanced budget amendment to the U.S. Constitution?
• Carefully explain why. (Remember to use economic concepts from the articles and from Chapters 16 for full credit! In other words, you need to use positive rather normative arguments. Answers that start with “I think it is unfair that . . .” will get very few points.)