Share
VIDEOS 1 TO 50
George Carlin - Balance the Budget
George Carlin - Balance the Budget
Published: 2008/08/25
Channel: feralboy101
The Balanced Budget Amendment Explained
The Balanced Budget Amendment Explained
Published: 2015/08/17
Channel: Keith Hughes
What Will Balance the Budget?
What Will Balance the Budget?
Published: 2017/01/16
Channel: TheJohnBirchSociety
What Can We Cut to Balance the Budget
What Can We Cut to Balance the Budget
Published: 2012/10/16
Channel: Learn Liberty
Fiscal Policy Budget Balance AP Macro
Fiscal Policy Budget Balance AP Macro
Published: 2015/11/12
Channel: Carey LaManna
Why a Balanced Budget is a Bad Idea...
Why a Balanced Budget is a Bad Idea...
Published: 2015/12/05
Channel: Thom Hartmann Program
Balancing Budget & Accounts (Whiteboard Wednesday)
Balancing Budget & Accounts (Whiteboard Wednesday)
Published: 2010/03/18
Channel: You Need A Budget (YNAB)
Two years after bankruptcy Detroit has balanced budget, $63m surplus
Two years after bankruptcy Detroit has balanced budget, $63m surplus
Published: 2017/06/01
Channel: WXYZ-TV Detroit | Channel 7
Paul Samuelson: The balanced budget myth
Paul Samuelson: The balanced budget myth
Published: 2014/03/01
Channel: wonkmonk
Balanced Budget Multiplier Part 1
Balanced Budget Multiplier Part 1
Published: 2012/06/07
Channel: learnittcom
A Quick Lesson in Economics:  The Spending, Tax, and Balanced Budget Multipliers
A Quick Lesson in Economics: The Spending, Tax, and Balanced Budget Multipliers
Published: 2012/05/24
Channel: ItsMySchoolProject
Obama: We don
Obama: We don't need a balanced budget amendment
Published: 2011/07/15
Channel: CBS News
MMT: A Balanced Budget Amendment Would Be Disastrous
MMT: A Balanced Budget Amendment Would Be Disastrous
Published: 2017/02/28
Channel: Deficit Owls
Dave (6/10) Movie CLIP - Balancing the Budget (1993) HD
Dave (6/10) Movie CLIP - Balancing the Budget (1993) HD
Published: 2012/10/07
Channel: Movieclips
Balanced Budget Amendment: A Simple Way To Cut Spending
Balanced Budget Amendment: A Simple Way To Cut Spending
Published: 2010/08/04
Channel: Marco Rubio
Goods market:  Balanced budget multiplier
Goods market: Balanced budget multiplier
Published: 2012/01/31
Channel: lostmy1
The Secret to Maintaining a Balanced Budget
The Secret to Maintaining a Balanced Budget
Published: 2017/02/07
Channel: Consolidated Credit
Thom Hartmann - The Biggest Balanced Budget Hypocrisy
Thom Hartmann - The Biggest Balanced Budget Hypocrisy
Published: 2011/07/21
Channel: The Big Picture RT
Balanced Budget Multiplier (ECO)
Balanced Budget Multiplier (ECO)
Published: 2016/01/13
Channel: Vidya-mitra
Balanced Budget Amendment: Worst idea of all time!
Balanced Budget Amendment: Worst idea of all time!
Published: 2016/05/03
Channel: Michael Norman
The GOP Balanced Budget Plan - What
The GOP Balanced Budget Plan - What's The Catch?
Published: 2015/03/18
Channel: The Young Turks
Sen. Rand Paul Speaks on Balanced Budget Amendment - Jan. 9, 2017
Sen. Rand Paul Speaks on Balanced Budget Amendment - Jan. 9, 2017
Published: 2017/01/09
Channel: SenatorRandPaul
yo b balance the budget.mp4
yo b balance the budget.mp4
Published: 2012/03/20
Channel: Jason Feldman
Paul Ryan proposing a balanced budget.
Paul Ryan proposing a balanced budget.
Published: 2017/07/18
Channel: Michael Norman
Ronald Reagan Talks About Balancing the Budget on Johnny Carson
Ronald Reagan Talks About Balancing the Budget on Johnny Carson's Tonight Show, 1975
Published: 2011/07/30
Channel: Johnny Carson
Senator Rand Paul Outlines a Balanced Budget to the Senate
Senator Rand Paul Outlines a Balanced Budget to the Senate
Published: 2017/01/10
Channel: Patriotic Populist
The Better Way: Benefits of a Balanced Budget
The Better Way: Benefits of a Balanced Budget
Published: 2016/12/26
Channel: Center for Accountable Government
Walter E Williams - Balanced Budget Amendment
Walter E Williams - Balanced Budget Amendment
Published: 2011/04/25
Channel: LibertyPen
What a balanced budget means
What a balanced budget means
Published: 2015/09/13
Channel: cpcpcc
BC delivers 4th consecutive balanced budget; mix of fiscal sanity, spending
BC delivers 4th consecutive balanced budget; mix of fiscal sanity, spending
Published: 2016/02/17
Channel: Rebel Media
Bernie Sanders on Balanced Budget Amendment (1/26/1995)
Bernie Sanders on Balanced Budget Amendment (1/26/1995)
Published: 2015/07/27
Channel: Catholics 4Bernie
President Clinton Signing the Balanced Budget Bill (1997)
President Clinton Signing the Balanced Budget Bill (1997)
Published: 2013/08/05
Channel: clintonlibrary42
Reagan on Balanced Budget
Reagan on Balanced Budget
Published: 2009/09/07
Channel: eudch
Conservatives renew push for balanced budget amendment
Conservatives renew push for balanced budget amendment
Published: 2015/04/06
Channel: Fox News
Goods market:  Balanced budget multiplier
Goods market: Balanced budget multiplier
Published: 2012/02/27
Channel: lostmy1
Newt Gingrich - Understanding Trumpism 3 : What Will A Trumpian Balanced Budget Look Like?
Newt Gingrich - Understanding Trumpism 3 : What Will A Trumpian Balanced Budget Look Like?
Published: 2017/03/06
Channel: CoffeeWithComment
Rep. Bryant Argues for Balanced Budget
Rep. Bryant Argues for Balanced Budget
Published: 2017/07/03
Channel: IL House GOP
Balanced Budget Amendments
Balanced Budget Amendments
Published: 2011/08/24
Channel: Thom Hartmann Program
A balanced budget and lower taxes
A balanced budget and lower taxes
Published: 2015/09/13
Channel: cpcpcc
Office of the Majority Whip | Balanced Budget Amendment Video
Office of the Majority Whip | Balanced Budget Amendment Video
Published: 2014/10/07
Channel: Kevin McCarthy
BC’s fifth consecutive balanced budget delivers the dividend of a strong economy
BC’s fifth consecutive balanced budget delivers the dividend of a strong economy
Published: 2017/02/21
Channel: ProvinceofBC
Balanced Budget Amendment  -  Single Issue Convention  -  Article V  -  State Legislators
Balanced Budget Amendment - Single Issue Convention - Article V - State Legislators
Published: 2012/08/02
Channel: Charles Kacprowicz
USA: WASHINGTON: BALANCED BUDGET AMENDMENT VOTE
USA: WASHINGTON: BALANCED BUDGET AMENDMENT VOTE
Published: 2015/07/21
Channel: AP Archive
20 Democrats Support a Balanced Budget Amendment
20 Democrats Support a Balanced Budget Amendment
Published: 2011/07/07
Channel: club4growth
Governor Chris Christie Approves Constitutionally Balanced Budget for FY2012
Governor Chris Christie Approves Constitutionally Balanced Budget for FY2012
Published: 2011/06/30
Channel: GovChristie
Gov. Kasich: The Time is Now for Federal Balanced Budget Amendment
Gov. Kasich: The Time is Now for Federal Balanced Budget Amendment
Published: 2013/11/26
Channel: Governor John Kasich
Tax Cut, and Balanced Budget Multipliers Debunked
Tax Cut, and Balanced Budget Multipliers Debunked
Published: 2015/08/07
Channel: MrTugwit
Happy Spring! Market outlook. Balanced budget??
Happy Spring! Market outlook. Balanced budget??
Published: 2017/03/20
Channel: Michael Norman
McCain to Republicans: Pushing Balanced Budget Amendment is "Bizarro"
McCain to Republicans: Pushing Balanced Budget Amendment is "Bizarro"
Published: 2011/07/27
Channel: SenateDemocrats
AP Macro: Unit 2 Screencast 6 - The Tax Multiplier and Balanced Budget Multiplier
AP Macro: Unit 2 Screencast 6 - The Tax Multiplier and Balanced Budget Multiplier
Published: 2016/09/08
Channel: AP Economics Screencasts
NEXT
GO TO RESULTS [51 .. 100]

WIKIPEDIA ARTICLE

From Wikipedia, the free encyclopedia
Jump to: navigation, search

A balanced budget (particularly that of a government) refers to a budget in which revenues are equal to expenditures. Thus, neither a budget deficit nor a budget surplus exists (the accounts "balance"). More generally, it refers to a budget that has no budget deficit, but could possibly have a budget surplus.[1] A cyclically balanced budget is a budget that is not necessarily balanced year-to-year, but is balanced over the economic cycle, running a surplus in boom years and running a deficit in lean years, with these offsetting over time.

Balanced budgets and the associated topic of budget deficits are a contentious point within academic economics and within politics. Most economists agree that a balanced budget decreases interest rates,[2] increases savings and investment,[2] shrinks trade deficits and helps the economy grow faster in the longer term.[2]

Economic views[edit]

Mainstream economics—mainly advocates a cyclic balanced budget, arguing from the perspective of Keynesian economics—budget deficits provide fiscal stimulus in lean times, while budget surpluses provide restraint in boom times. However, it should be noted that Keynesian economics does not advocate for fiscal stimulus when the existing government debt is already significant.

Alternative currents in the mainstream and branches of heterodox economics argue differently, with some arguing that budget deficits are always harmful, and others arguing that budget deficits are not only beneficial, but also necessary.

Schools which often argue against the effectiveness of budget deficits as cyclical tools include the freshwater school of mainstream economics and neoclassical economics more generally, and the Austrian school of economics. Budget deficits are argued to be necessary by some within Post-Keynesian economics, notably the Chartalist school.

Larger deficits, sufficient to recycle savings out of a growing gross domestic product (GDP) in excess of what can be recycled by profit-seeking private investment, are not an economic sin but an economic necessity.[3]

Budget deficits can usually be calculated by subtracting the total planned expenditure from the total available budget. This will then show either a budget deficit (a negative total) or a budget surplus (a positive total).

Political views[edit]

United States[edit]

In the United States, the fiscal conservatism movement believes that balanced budgets are an important goal. Every state other than Vermont has a balanced budget amendment, providing some form of ban on deficits, while the Oregon kicker bans surpluses of greater than 2% of revenue. The Colorado Taxpayer Bill of Rights (the TABOR amendment) also bans surpluses, and requires the state to refund taxpayers in event of a budget surplus.

Sweden[edit]

Following the over-borrowing in both the public and private sector that led to the Swedish banking crisis of the early 1990s and under influence from a series of reports on the future demographic challenges, a wide political consensus developed on fiscal prudence. In the year 2000 this was enshrined in a law that stated a goal of a surplus of 2% over the business cycle, to be used to pay off the public debt and to secure the long-term future for the cherished welfare state. Today the goal is 1% over the business cycle, as the retirement pension is no longer considered a government expenditure.

United Kingdom[edit]

In 2015 George Osborne, the Chancellor of the Exchequer, announced that he intended to implement a law whereby the government must deliver a budget surplus if the economy is growing.[4] Academics have criticised this proposal with Cambridge University professor Ha-Joon Chang saying the chancellor was turning a blind eye to the complexities of a 21st-century economy that demanded governments remain flexible and responsive to changing global events.[5]

Since 1980 there has only been six years when a budget surplus has been delivered, twice whilst the Conservative's John Major was Chancellor of the Exchequer in 1988 and 1989 and four times whilst Labour's Gordon Brown was Chancellor, in 1998, 1999, 2000 and 2001.[6]

Balanced budget multiplier[edit]

Because of the multiplier effect, it is possible to change aggregate demand (Y) keeping a balanced budget. The government increases its expenditures (G), balancing it by an increase in taxes (T). Since only part of the money taken away from households would have actually been used in the economy, the change in consumption expenditure will be smaller than the change in taxes. Therefore, the money which would have been saved by households is instead injected into the economy, itself becoming part of the multiplier process. In general, a change in the balanced budget will change aggregate demand by an amount equal to the change in spending.

Balanced budget multiplier as taxes depend on income

See also[edit]

References[edit]

  1. ^ O'Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics: Principles in Action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. pp. 376, 403. ISBN 0-13-063085-3. 
  2. ^ a b c "Winners and Losers In a Balanced Budget". The Washington Post. 4 May 1997. 
  3. ^ (Vickrey 1996, Fallacy 1)
  4. ^ "Osborne confirms Budget surplus law". BBC News. 10 June 2015. Retrieved 27 February 2017. 
  5. ^ Inman, Phillip (12 June 2015). "Academics attack George Osborne budget surplus proposal". The Guardian. Retrieved 27 February 2017. 
  6. ^ Rogers, Simon; Kollewe, Julia (22 May 2013). "Deficit, national debt and government borrowing - how has it changed since 1946?". The Guardian. Retrieved 27 February 2017. 

Disclaimer

None of the audio/visual content is hosted on this site. All media is embedded from other sites such as GoogleVideo, Wikipedia, YouTube etc. Therefore, this site has no control over the copyright issues of the streaming media.

All issues concerning copyright violations should be aimed at the sites hosting the material. This site does not host any of the streaming media and the owner has not uploaded any of the material to the video hosting servers. Anyone can find the same content on Google Video or YouTube by themselves.

The owner of this site cannot know which documentaries are in public domain, which has been uploaded to e.g. YouTube by the owner and which has been uploaded without permission. The copyright owner must contact the source if he wants his material off the Internet completely.

Powered by YouTube
Wikipedia content is licensed under the GFDL and (CC) license