Balanced Budget Amendment

The reason the Constitution does not require a balanced budget is because the founders did not intend for the Federal Government to finance like households.

The Federal Government, unlike households, is too big to fail, and if it does, the security, the domestic tranquility, of all households suffers.

While default of one household among a plurality does not threaten the entire system, default of the national debt affects everyone equally (like a flat tax) as long as household incomes do not accumulate unequally. As long as a plurality is maintained, one household cannot threaten other households with the risk of detriment and extort value unless enough value is accumulated to be a threat.

That the Federal Government is too big and powerful to fail is exactly what anti-federalists did not like about it, but the Federalist party contended that the Constitution provides for adequate checks and balances (pluralism).

Among our nation's most famous, founding Federalists was our first treasury secretary, Alexander Hamilton who argued it was impractical for the Federal Government to have a balanced budget. Not only did the government assume the debts of the states when they ratified the Constitution, but having an ongoing debt, Hamilton argued, with the full faith and credit of the Federal Government to pay it without fail scores a AAA credit rating to build the wealth of the nation.

The result is the wealthiest nation the world has ever seen, assured by means of public finance that did not require a balanced budget but a continuous debt proportion that always demonstrates the full faith and credit of "We the People" of the United States.