It's irresponsible and reckless to run a country on borrowed money. Our party believes in fiscal responsibility and that's why we are for a balanced budget amendment. Bottom line is this: If you have to live on a budget, so do we.On the practical side a balanced budget accomplishes a bunch of things.
- Paid for by The New Liberal Democrats
First, it forces the country to pay for the services it demands from government which imposes an immediate cost. "immediate" is important. Who will want to repeal a handout they have gotten for years? Who will remember why their taxes are being raised five years after the fact? No one. Transparency (another huge winning argument) dictates that we try as best as possible to tie cause and effect.
While I know that higher taxes lead to lower economic growth, higher taxes also change people's minds. Especially the minds of people who pay them. The sooner taxpayers feel the bite of higher taxes, the weightier the argument to lower them (by cutting spending) becomes. You take away the false promise of liberals that more and more government services are a free lunch. You make them defend having their cake and 10% unemployment.
Finally, your political brand is strengthened. You are fiscally responsible, like the head of a household who pays the bills when they come due. People understand this and they relate to it.