Read "If Everyone Agrees that We Should Balance the Budget by 2002, What's the Problem with a Constitutional Amendment?" by Robert Greenstein.

Questions

1. What happens to tax revenue and transfer payments during a recession under existing law?
2. Is the author correct in arguing that the requirement of an annually balanced budget would tend to destabilize the economy? Explain.
3. If an annually balanced budget is required, would automatic stabilizers still exist?