RM: I am glad you agree with my main point, which is that constant tinkering with taxes and government spending is more likely to make things worse, rather than better. That is why I oppose a BBA. As I explained, a BBA would require constant “Keynesian meddling” to keep the annual budget in balance — raising taxes and cutting spending every time there was a recession (similar to Hoover’s policy at the start of the Depression), with no restraint on cutting taxes or spending on dumb stuff during periods of overheating (similar to W’s unfunded wars during the bubble economy that touched off the Great Recession). Rather than that, it would be better to set spending and tax policies for a longer time horizon, leave them there, and let the budget balance move around with the cycle.

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Economist, Senior Fellow at Niskanen Center, Yale Ph.D. Interests include environment, health care policy, social safety net, economic freedom.

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