If only it were as simple as $X.XX in = $X.XX out. But as with most American household budgets it's not. Financially healthy households need access to credit (mortgages, car loans, credit cards, etc.) The government also must at times have the ability to spend beyond its revenue intake.

Quoting from an article by Colin Hanna from foxnews.com: "A good Balanced Budget Amendment must provide some flexibility to deal with economic cycles that result in legitimately unexpected revenue shortfalls, as well as the need to accommodate the exigencies of wars and large-scale natural disasters, but whatever flexibility is provided must be related to the immediate cause."

It's also an issue of debt burden. A total debt of $200,000 might not be a problem for a person making $700,000 a year. But to a person making $35,000 a year it spells bankruptcy. Likewise, Federal debt and spending must be tied to revenues.

I'm really not even sure of the questions, let alone the answers. I do know the Federal government cannot continue to increase debt at its current revenue level. Some form of constraint must be put on Federal spending to keep it in line with revenues.

November, 2011