Dan Mitchell
…consider the fact that balanced budget requirements haven’t prevented states like California, Illinois, Connecticut, and New York from adopting bad policy. Or look at France, Italy, Greece, and other EU nations that are fiscal basket cases even though there are “Maastricht rules” that basically are akin to balanced budget requirements…
This is why it’s far better to have spending caps so that government grows slower than the private sector.Which is why we’ve seen very good results in jurisdictions such as Switzerland and Hong Kong that have such policies.… show more
If you asked a bunch of Republican politicians for their favorite fiscal policy goals, a balanced budget amendment almost certainly would be high on their list. This is very unfortunate. Not becaus…
Source: More Evidence that Balanced Budget Rules Don’t Work as Well as Spending Caps | International Liberty
