The 1995 Balanced Budget Amendment for is often brought up as a way to stabilize the public debt. But how would it operate, what implications would it have for U.S. public finance or macroeconomic conditions, and would it be effective at controlling whatever threat the federal debt poses? After the bill failed in 1995, two economists published opposing views on the effectiveness of the failed amendment. Examining their arguments and history, it remains unclear whether the 1995 amendment could effectively control the federal debt.
Major Themes in Economics
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"Would the 1995 Balanced Budget Amendment be an Effective Mechanism for Stabilizing Public Debt?,"
Major Themes in Economics: Vol. 15
, Article 7.
Available at: https://scholarworks.uni.edu/mtie/vol15/iss1/7