by Arnold Kling
American Enterprise Institute
January 22, 2013
I do not much care which balanced budget amendment is passed. Any amendment will be imperfect, and Congress can probably find a way around any amendment if it wants to. But having an amendment in the Constitution would send a strong signal that the public expects the budget to be balanced. This signal itself would provide the best mechanism for enforcement. Keynesian economists will insist that a balanced budget amendment will prevent the government from achieving an ideal countercyclical fiscal policy. But the reality has been far from ideal. As the old song goes, after 16 tons of Keynesian economics, all we have to show for it is that we are deeper in debt.
