Reply #25: Actually, that isn't all that complicated.

[Ruby the Liberal]

Deficit spending can be accomplished quickly when the country needs to adjust to changing economic situations (think the aftermath of 9/11 or Katrina - or an unexpected California earthquake).

Taxation doesn't come into play immediately - taxation is normally done with an effective date of 1-2 years out, so no immediate receipts

A balanced budget would force neutering the former while requiring the latter, which would hamper the country in being able to make decisions quickly to stop a economic situation from spiralling out of control.

Then, when it is time to address the deficit, raise taxes.

In times of surplus, lower taxes.

It is a cycle. Lather, Rinse, Repeat.

(On a side note - funding wars on the deficit is more akin to that meal I mentioned. That is definitely something that should NEVER be done on a deficit spending basis. Bush the lesser screwed up when he deficit spent on non-investment AND lowered taxes during a downturn. Double whammy. No President has EVER gone to war without raising taxes, much less lowering them as Dimson did).

Make sense?