Fiscal Policy Checkpoint Discussion
Can Congress and the President Ever Balance the Federal Budget?
Read: the description of public choice theory: “Public choice – Definition” at http://www.wordiq.com/definition/Public_choice. If you need more information, check out: “Public Choice” at http://www.econlib.org/library/Enc/PublicChoice.ht… and/or “Public Choice Theory” at http://www.econlib.org/library/Enc1/PublicChoiceTh…
Read: “Why Congress’s Bipartisan Budget Deal Should Make Trump Worried“: at https://www.nytimes.com/2017/05/01/us/politics/con… and “Congress strikes budget deal that shortchanges Trump“ at https://www.politico.com/story/2017/04/30/budget-d…
Watch: ” John Stossel – The Money Hole” at or “The Money Hole” by John Stossel, parts 1, 2, and 3” at
Read: You may want to read the following articles about the recent debt ceiling crises: “The Federal Deficit Mess—Posner” at http://www.becker-posner-blog.com/2011/07/the-federal-deficit-messposner.html; and “Short and Long Term United States Fiscal Crises-Becker: at http://www.becker-posner-blog.com/2011/07/short-and-long-term-united-states-fiscal-crises-becker.html; “The Depression, the Deficit Debacle, and the Debt-Ceiling Crisis—Posner” at http://www.becker-posner-blog.com/2011/08/the-depression-the-deficit-debacle-and-the-debt-ceiling-crisisposner.html; “Immediate and Medium Term Debt and Deficit Problems-Becker” at http://www.becker-posner-blog.com/2011/08/immediat…
Read: You may also want to read: “Fiscal reform – Why we’re hosed” at http://www.economist.com/blogs/democracyinamerica/…
Post: your answers to the following questions:
Using Public Choice Theory, explain why it is so difficult for Congress to reduce the budget deficit.
Would you have supported President Trump’s budget or would you have supported the one that passed the Congress in 2017?
Carefully explain why.
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