why should the government not balance its budget?

Answer 1

Because they have the Federal Reserve Bank to print all the fiat money they need.

If congress had to balance its checkbook they might have to raise taxes to make up for any shortfall. Rasing taxes is largely unpopular. Therefore in 1913 several rich bankers and powerful seantors met in secret to design the Federal Reserve Bank.

The Bank was given the power to lend credit to the US government on demand as long as the US government pledged the labor of the people to repay these loans. And this is where our national debt comes from. Over the decades Congress has borrowed and borrowed money and used the hidden tax of inflation to prevent them from raising taxes when they needed more money then they had on hand.

And this is why the US Dollar has lost 98%-99% of its purchasing power since the inception of the Federal Reserve bank. The same bank that just recently announced they were making the ammount of US Dollars in circulation secret so that you will no longer be able to accuratly gauge the level of inflation that is going to occur in the coming years. If I were you I would definatly start buying gold and silver.

Answer 2

Why *should* the government not balance the budget???

In times of unforeseeable national emergencies or times of war, deficit spending can be a necessary evil. But it's still an evil, a harm to our nation, a waste of tax dollars on interest on the debt & a tax increase on future generations. There's never a time or a context where the nation, and its government, should not try to live within its means.

Is there ever a time you *should* run up a balance on your credit card? It's a necessary evil sometimes, but I seriously doubt any beneficial aspects can be derived from it (for anyone but the card issuer who makes money off your debt.)

Answer 3

Because a surplus as a means of contractionary fiscal policy or a deficit as a means of expansionary fiscal policy are used by the government to curb inflation or end recession. If you keep the budget balanced you may end up hurting the economy.

Answer 4

govt has two financial activities one-making expenditure in different activities and second-collecting revenue through taxes but there is a time lag between making expenditure and collecting revenue. the govt should not balance its budget because being a developing country its spendings are more for meeting the requirement of people than its revenue.

Answer 5

It has no control on its expenditure and no political will to ensure productive expenditure. It has been wasting most of the mony on its administration and vote bank exercises, than worthful and long-standing projects.

Answer 6

Because they spend more money than any computer can process????

Answer 7

govt. is not good now

Answer 8

HOW POLITICIAN WILL MAKE MONEY.