Answer to Question #32132 in Macroeconomics for kyron regis
Should the federal government always balance its budget? Why or why not?
Yes, the government should balance its budget,because the federal government spending is mainly composed of the costs of maintaining the level of income and national defense, while spending on education, health care, construction of highways, etc. prevail at the level of states and governments at the local government level. All these spheres are a vital part of human life. Thus, federal government finances its activities through personal income taxes, corporate income taxes and payroll, and state and local government generally receive funds through sales and property taxes.