James:
It should be illegal to run the Federal Budget at a deficit.
Me:
Although they may exist, I am not familiar with one economist who would agree with you. At a minimum, it goes back to the idea that “the Constitution is not a suicide pact“.
James:
You should read Henry Hazlitt.
Rik:
More important than that, we all need to read the “Federalist Papers“.
Me:
I know Hayek’s writings, but not Hazlitt. I see they are birds-of-a-feather. But I’m not aware that intolerance of budget deficit is their economic foundation.
Still, should it have been illegal to prosecute World War II except with the proceeds from a budget surplus? Allow the Axis Powers win unless we can tax and save enough? Of course not. The Constitution is not a suicide pact.
Likewise, as a country would we let millions of citizens starve during some unusual event because it might require running a deficit? Of course not. It would show us to be morally bankrupt, plus instigate an idiotic revolution.
However, I am certainly in agreement that discretionary expeditions such as Iraq and Afghanistan should have been paid for with current receipts. Borrowing for that and other post-911 security foolishness has been a dealmaker’s playground, exceptionally benefiting the plutocracy.
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