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Identify the fallacy most clearly exhibited in the following 1. We need a balanced budget amendment,...

Identify the fallacy most clearly exhibited in the following

1. We need a balanced budget amendment, forcing the U.S. government to balance its budget every year. All of the states have to balance their budgets; so should the country.

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Ans) A balanced budget amendment is a constitutional rule requiring that a state cannot spend more than its income.

- It requires a balance between the projected receipts and expenditures of the government. There is a near-consensus among economists that a balanced budget amendment would not reduce economic volatility.

- Even the number of states whose laws require a balanced budget can be disputed, depending on the way the requirements are defined.

- The National Conference of State Legislatures (NCSL) has traditionally reported that 49 states must balance their budgets, with Vermont being the exception.

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