Treasury Releases Policy Paper On Balanced Budget Amendment.
Treasury Releases Policy Paper On Balanced Budget Amendment.
- Institutional AuthorsU.S. TreasuryOffice of Economic Policy
- Index Termsbudget, federal, balanced budget amendmentbudget, federal, deficit reduction
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 95-2400 (59 pages)
- Tax Analysts Electronic Citation95 TNT 40-17
The Treasury Department has released a paper, "The Balanced Budget Amendment and the Economy, How a Balanced Budget Amendment Would Have Worsened the Recession of 1990-92: A State-by-State Analysis."
"Simply put, a balanced budget amendment could cause significant harm to the economy," the Treasury reported. It said the amendment would hinder the federal government's ability to ease the impact of recessions by making the government raise taxes and cut spending in recessions just when the opposite needs to be done.
To illustrate the effects of a balanced budget amendment, Treasury referred to the recession of 1990-92 when economic stabilizers allowed spending for unemployment compensation and food stamps to increase, even though revenue fell because taxpayers' income decreased. While these changes boost the deficit, they "reduce the damage done by recessions to the American economy and American families," Treasury maintained.
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THE BALANCED BUDGET AMENDMENT AND THE ECONOMY
How a Balanced Budget Amendment Would Have
Worsened the Recession of 1990-1992:
A State-by-State Analysis
Department of the Treasury
Office of Economic Policy
February 23, 1995
TABLE OF CONTENTS
I. Introduction
The Balanced Budget Amendment and the Economy: How a Balanced
Budget Amendment Would Have Worsened the Recession of 1990-1992
II. Summary Table
III. State-by-State Analysis
IV. Methodology
THE BALANCED BUDGET AMENDMENT AND THE ECONOMY:
How a Balanced Budget Amendment Would Have Worsened the
Recession of 1990-1992
INTRODUCTION
So far the debate over a balanced budget amendment has been primarily a political debate. Proponents of "cutting" have squared off against proponents of "spending." The one thing that has been oddly lacking is a straightforward discussion of how a balanced budget amendment might affect the economy. Thus, this paper examines the possible consequences of a balanced budget amendment on jobs, on incomes, and on the long-term standards of living of the American people.
Simply put, a balanced budget amendment could cause significant harm to the economy. The balanced budget amendment currently being considered by Congress would require the federal budget to be balanced by a date certain. This requirement could harm the American economy and American workers in two basic ways. First, the economy may have trouble handling the elimination of the deficit too fast -- by cutting spending and raising taxes by about $1.2 trillion between now and 2002 ($1.6 trillion if tax cuts proposed in the Contract With America are adopted). Perhaps more importantly, requiring a balanced budget in every year, regardless of the economic situation, would hamper the ability of the federal government to lessen the impact of recessions.
DANGER TO THE ECONOMY
A balanced budget amendment would make economic recessions more severe than they otherwise would be. Currently, the federal budget helps to lessen the impact of recessions through "automatic stabilizers." These automatic stabilizers allow spending to increase and revenue to fall during times of economic hardship. For example, spending on federal government programs like unemployment compensation and food stamps automatically increase as the economy goes into recession because more people become eligible for the programs. In addition, as people earn less money as a result of a recession, they pay less in taxes. While these changes in spending and taxes increase the deficit, they serve to reduce the damage done by recessions to the American economy and American families.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do the most harm to the economy and aggravate the recession.
How do automatic stabilizers work? On average, every one dollar drop in production and incomes as the economy enters a recession generates a twenty-seven cent increase in the deficit, as tax revenues fall and spending on programs rises.
Thus, a one dollar fall in incomes and spending becomes a fall of only 73 cents to the economy as a whole. Shocks to total demand and spending would therefore be more than one-third larger if the federal budget were forced to be in year-by-year balance as the economy goes through business cycles.
The principal benefit of the automatic stabilizers is that they are automatic and take effect immediately. We lack the advance notice of a recession for either Congress or the Federal Reserve to react effectively. For example, as of early 1991, the Federal Reserve concluded that it had adopted appropriate anti-recessionary policies and expected a recovery by mid-1992. It did not anticipate the further rise in unemployment.
Thus, while the Federal Reserve bears an important part of the responsibility for managing the business cycle, its ability to "fine tune" the economy is limited. Given the lags with which its policies affect the economy, the Federal Reserve would have difficulty compensating for the elimination of automatic stabilizers during recessions and the shock to the economy of reducing the deficit too fast. Even with the most effective Federal Reserve policy, a balanced budget amendment would amplify recessions and harm the economy.
THE RECESSION OF 1992
To illustrate how the business cycle would change under an amendment, consider the recession of 1990-1992. During this recession, the unemployment rate rose from 5.1 percent in June of 1990 to 7.7 percent in June of 1992. The automatic stabilizers in the federal budget injected roughly $87 billion into the economy into the economy in 1992 relative to 1990. This cyclical increase in the deficit helped to mitigate the impact of the recession, making the unemployment rate between 0.7 and 1.7 percentage points lower in June of 1992 than it otherwise would have been. Thus, if a balanced budget amendment had been in effect -- and the cyclical increase in the deficit had been offset by spending cuts and tax increases -- the unemployment rate would have peaked somewhere in the range of 8.3 to 9.4 percent.
The implications of this analysis is that employment would have been about 1.5 million lower in mid-1992 -- as shown in Chart A -- if a balanced budget amendment had been in effect.
[Chart A omitted]
CONCLUSION
Large deficits in the recent past have led many to believe that a balanced budget amendment to the Constitution is the only way to ensure fiscal discipline. The large deficits of the 1980s and early 1990s, however, are an exception to the general pattern since World War II.
Further, while the deficit as a share of the Gross Domestic Product (GDP) did rise to high levels during the 1980s, this ratio is now on a downward trend. The deficit as a share of GDP, which was 4.9 percent in 1992, is currently projected to steadily decline to 1.6 percent of GDP in 2005. The Administration and Congress have achieved this through difficult decisions to reduce spending and to increase revenues (see chart B).
[Chart B omitted]
For example, before this Administration took office, the deficit was projected to be $400 billion in 1998 -- current projections show that this has been cut by more than half, to $194 billion. In fact, the federal budget is currently in primary surplus -- revenues exceed the federal government's spending on all federal programs combined. The deficit is due solely to the cost of paying interest on the debt accumulated largely during the high deficits of the 1980s -- not because we are overspending today (see Chart C).
[Chart C omitted]
The relatively small deficits prior to the 1980s and the experience of the past two years shows that fiscal discipline does not require such drastic action as amending the Constitution and the severe economic consequences that would result.
UNEMPLOYMENT RATE EXTRA JOBS LOST WITH
UNEMPLOYMENT RATE WITH BALANCED BUDGET BALANCED BUDGET
STATE IN JUNE 1992 AMENDMENT AMENDMENT
______________________________________________________________________
Alabama 7.5 7.7 - 8.1 3,300-10,000
Alaska 9.1 9.6 - 10.6 1,300-4,000
Arizona 7.7 8.2 - 9.2 8,500-25,500
Arkansas 7.3 7.5 - 7.8 1,600-4,800
California 9.3 10.2 - 12.1 129,400-388,100
Colorado 6.2 6.5 - 7.0 4,700-14,200
Connecticut 7.7 8.3 - 9.6 10,500-31,400
Delaware 5.6 5.9 - 6.6 1,100-3,300
Florida 8.5 9.1 - 10.4 38,800-116,500
Georgia 7.0 7.4 - 8.1 11,500-34,400
Hawaii 4.7 5.2 - 6.1 2,500-7,600
Idaho 6.4 6.6 - 6.9 700-2,200
Illinois 8.4 8.8 - 9.7 24,200-72,200
Indiana 6.8 7.2 - 8.0 10,300-31,000
Iowa 4.7 4.9 - 5.2 200-600
Kansas 3.9 4.1 - 4.4 1,900-5,600
Kentucky 7.0 7.3 - 7.9 4,900-14,700
Louisiana 7.3 7.6 - 8.2 5,400-16,200
Maine 6.7 7.1 - 7.9 2,400-7,100
Maryland 6.6 7.0 - 7.9 11,000-32,900
Massachusetts 9.0 9.6 - 10.9 18,700-56,100
Michigan 8.9 9.3 - 10.0 15,500-46,600
Minnesota 5.2 5.4 - 5.7 3,400-10,200
Mississippi 8.6 8.9 - 9.5 3,300-9,800
Missouri 5.7 5.9 - 6.2 3,800-11,300
Montana 6.7 7.0 - 7.5 1,000-3,000
Nebraska 3.1 3.3 - 3.8 1,900-5,600
Nevada 6.6 7.0 - 7.8 2,800-8,300
New Hampshire 7.6 8.0 - 8.9 2,500-7,400
New Jersey 9.0 9.9 - 11.8 34,400-103,100
New Mexico 6.9 7.1 - 7.4 1,100-3,300
New York 8.9 9.7 - 11.4 65,900-197,600
North Carolina 6.4 6.9 - 7.8 15,400-46,200
North Dakota 4.8 5.0 - 5.4 600-1,900
Ohio 7.7 8.2 - 9.3 26,800-80,300
Oklahoma 5.4 5.7 - 6.0 2,100-6,400
Oregon 7.4 7.8 - 8.6 5,900-17,700
Pennsylvania 7.7 8.3 - 9.6 33,700-101,200
Rhode Island 9.1 9.6 - 10.6 2,300-6,900
South Carolina 6.1 6.4 - 7.1 5,400-16,300
South Dakota 3.1 3.3 - 3.6 500-1,500
Tennessee 6.4 6.7 - 7.3 6,900-20,600
Texas 7.8 8.2 - 8.9 30,700-92,200
Utah 5.0 5.2 - 5.5 1,300-3,900
Vermont 6.9 7.3 - 8.2 1,300-3,800
Virginia 6.4 6.9 - 7.9 15,400-46,200
Washington 7.4 8.0 - 8.9 15,200-45,700
West Virginia 11.3 12.0 - 13.5 5,000-15,000
Wisconsin 5.2 5.4 - 5.8 5,300-15,800
Wyoming 5.8 6.0 - 6.3 300-1,000
THE IMPACT ON ALABAMA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND ALABAMA:
o During the recession of 1990-1992, the unemployment rate in
Alabama rose from 6.7 percent to a peak of 7.5 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Alabama would have peaked at a higher
level: between 7.7 and 8.1 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 3,300 to 10,000 in Alabama
in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON ALASKA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND ALASKA:
o During the recession of 1990-1992, the unemployment rate in
Alaska rose from 6.9 percent to a peak of 9.1 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Alaska would have peaked at a higher
level: between 9.6 and 10.6 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 1,300 to 4,000 in Alaska
in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON ARIZONA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND ARIZONA:
o During the recession of 1990-1992, the unemployment rate in
Arizona rose from 5.5 percent to a peak of 7.7 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Arizona would have peaked at a higher
level: between 8.2 and 9.2 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 8,500 to 25,500 in Arizona
in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON ARKANSAS JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND ARKANSAS:
o During the recession of 1990-1992, the unemployment rate in
Arkansas rose from 6.8 percent to a peak of 7.3 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Arkansas would have peaked at a higher
level: between 7.5 and 7.8 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 1,600 to 4,800 in Arkansas
in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON CALIFORNIA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND CALIFORNIA:
o During the recession of 1990-1992, the unemployment rate in
California rose from 5.3 percent to a peak of 9.3 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in California would have peaked at a higher
level: between 10.2 and 12.1 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 129,400 to 388,100 in
California in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON COLORADO JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND COLORADO:
o During the recession of 1990-1992, the unemployment rate in
Colorado rose from 5.0 percent to a peak of 6.2 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Colorado would have peaked at a higher
level: between 6.5 and 7.0 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 4,700 to 14,200 in Colorado
in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON CONNECTICUT JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND CONNECTICUT:
o During the recession of 1990-1992, the unemployment rate in
Connecticut rose from 5.0 percent to a peak of 7.7 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Connecticut would have peaked at a higher
level: between 8.3 and 9.6 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 10,500 to 31,400 in
Connecticut in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON DELAWARE JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND DELAWARE:
o During the recession of 1990-1992, the unemployment rate in
Delaware rose from 4.2 percent to a peak of 5.6 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Delaware would have peaked at a higher
level: between 5.9 and 6.6 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 1,100 to 3,300 in Delaware
in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON FLORIDA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND FLORIDA:
o During the recession of 1990-1992, the unemployment rate in
Florida rose from 5.7 percent to a peak of 8.5 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Florida would have peaked at a higher
level: between 9.1 and 10.4 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 38,800 to 116,500 in
Florida in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON GEORGIA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND GEORGIA:
o During the recession of 1990-1992, the unemployment rate in
Georgia rose from 5.4 percent to a peak of 7.0 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Georgia would have peaked at a higher
level: between 7.4 and 8.1 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 11,500 to 34,400 in Georgia
in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON HAWAII JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND HAWAII:
o During the recession of 1990-1992, the unemployment rate in
Hawaii rose from 2.7 percent to a peak of 4.7 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Hawaii would have peaked at a higher
level: between 5.2 and 6.1 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 2,500 to 7,600 in Hawaii
in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON IDAHO JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND IDAHO:
o During the recession of 1990-1992, the unemployment rate in
Idaho remained stable at 6.4 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Idaho would have peaked at a higher
level: between 6.6 and 6.9 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 700 to 2,200 in Idaho
in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON ILLINOIS JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND ILLINOIS:
o During the recession of 1990-1992, the unemployment rate in
Illinois rose from 6.5 percent to a peak of 8.4 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Illinois would have peaked at a higher
level: between 8.8 and 9.7 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 24,200 to 72,200 in
Illinois in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON INDIANA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND INDIANA:
o During the recession of 1990-1992, the unemployment rate in
Indiana rose from 5.1 percent to a peak of 6.8 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Indiana would have peaked at a higher
level: between 7.2 and 8.0 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 10,300 to 31,000 in Indiana
in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON IOWA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND IOWA:
o During the recession of 1990-1992, the unemployment rate in
Iowa rose from 4.2 percent to a peak of 4.7 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Iowa would have peaked at a higher level:
between 4.9 and 5.2 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 200 to 600 in Iowa in the
recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON KANSAS JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND KANSAS:
o During the recession of 1990-1992, the unemployment rate in
Kansas fell -- from 4.5 percent to 3.9 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Kansas at the time of highest nationwide
unemployment would have been between 4.1 and 4.4 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 1,900 to 5,600 in Kansas in
the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON KENTUCKY JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND KENTUCKY:
o During the recession of 1990-1992, the unemployment rate in
Kentucky rose from 5.7 percent to a peak of 7.0 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Kentucky would have peaked at a higher
level: between 7.3 and 7.9 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 4,900 to 14,700 in Kentucky
in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON LOUISIANA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND LOUISIANA:
o During the recession of 1990-1992, the unemployment rate in
Louisiana rose from 6.2 percent to a peak of 7.3 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Louisiana would have peaked at a higher
level: between 7.6 and 8.2 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 5,400 to 16,200 in
Louisiana in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON MAINE JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND MAINE:
o During the recession of 1990-1992, the unemployment rate in
Maine rose from 5.0 percent to a peak of 6.7 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Maine would have peaked at a higher
level: between 7.1 and 7.9 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 2,400 to 7,100 in Maine in
the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON MARYLAND JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND MARYLAND:
o During the recession of 1990-1992, the unemployment rate in
Maryland rose from 4.7 percent to a peak of 6.6 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Maryland would have peaked at a higher
level: between 7.0 and 7.9 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 11,000 to 32,900 in
Maryland in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON MASSACHUSETTS JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND MASSACHUSETTS:
o During the recession of 1990-1992, the unemployment rate in
Massachusetts rose from 6.2 percent to a peak of 9.0 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Massachusetts would have peaked at a
higher level: between 9.6 and 10.9 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 18,700 to 56,100 in
Massachusetts in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON MICHIGAN JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND MICHIGAN:
o During the recession of 1990-1992, the unemployment rate in
Michigan rose from 7.3 percent to a peak of 8.9 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Michigan would have peaked at a higher
level: between 9.3 and 10.0 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 15,500 to 46,600 in
Michigan in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON MINNESOTA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND MINNESOTA:
o During the recession of 1990-1992, the unemployment rate in
Minnesota rose from 4.9 percent to a peak of 5.2 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Minnesota would have peaked at a higher
level: between 5.4 and 5.7 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 3,400 to 10,200 in
Minnesota in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON MISSISSIPPI JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND MISSISSIPPI:
o During the recession of 1990-1992, the unemployment rate in
Mississippi rose from 7.3 percent to a peak of 8.6 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Mississippi would have peaked at a
higher level: between 8.9 and 9.5 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 3,300 to 9,800 in
Mississippi in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON MISSOURI JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND MISSOURI:
o During the recession of 1990-1992, the unemployment rate in
Missouri was steady at 5.7 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Missouri would have peaked at a higher
level: between 5.9 and 6.2 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 3,800 to 11,300 in Missouri
in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON MONTANA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND MONTANA:
o During the recession of 1990-1992, the unemployment rate in
Montana rose from 5.6 percent to a peak of 6.7 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Montana would have peaked at a higher
level: between 7.0 and 7.5 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 1,000 to 3,000 in Montana
in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON NEBRASKA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND NEBRASKA:
o During the recession of 1990-1992, the unemployment rate in
Nebraska rose from 2.1 percent to a peak of 3.1 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Nebraska would have peaked at a higher
level: between 3.3 and 3.8 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 1,900 to 5,600 in Nebraska
in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON NEVADA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND NEVADA:
o During the recession of 1990-1992, the unemployment rate in
Nevada rose from 4.8 percent to a peak of 6.6 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Nevada would have peaked at a higher
level: between 7.0 and 7.8 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 2,800 to 8,300 in Nevada in
the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON NEW HAMPSHIRE JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND NEW HAMPSHIRE:
o During the recession of 1990-1992, the unemployment rate in
New Hampshire rose from 5.7 percent to a peak of 7.6 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in New Hampshire would have peaked at a
higher level: between 8.0 and 8.9 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 2,500 to 7,400 in New
Hampshire in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON NEW JERSEY JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND NEW JERSEY:
o During the recession of 1990-1992, the unemployment rate in
New Jersey rose from 4.9 percent to a peak of 9.0 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in New Jersey would have peaked at a higher
level: between 9.9 and 11.8 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 34,400 to 103,100 in
New Jersey in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON NEW MEXICO JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND NEW MEXICO:
o During the recession of 1990-1992, the unemployment rate in
New Mexico rose from 6.2 percent to a peak of 6.9 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in New Mexico would have peaked at a higher
level: between 7.1 and 7.4 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 1,100 to 3,300 in New
Mexico in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON NEW YORK JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND NEW YORK:
o During the recession of 1990-1992, the unemployment rate in
New York rose from 5.3 percent to a peak of 8.9 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in New York would have peaked at a higher
level: between 9.7 and 11.4 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 65,900 to 197,600 in
New York in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON NORTH CAROLINA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND NORTH CAROLINA:
o During the recession of 1990-1992, the unemployment rate in
North Carolina rose from 4.4 percent to a peak of 6.4 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in North Carolina would have peaked at a
higher level: between 6.9 and 7.8 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 15,400 to 46,200 in North
Carolina in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON NORTH DAKOTA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND NORTH DAKOTA:
o During the recession of 1990-1992, the unemployment rate in
North Dakota rose from 3.9 percent to a peak of 4.8 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in North Dakota would have peaked at a
higher level: between 5.0 and 5.4 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 600 to 1,900 in North
Dakota in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON OHIO JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND OHIO:
o During the recession of 1990-1992, the unemployment rate in
Ohio rose from 5.4 percent to a peak of 7.7 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Ohio would have peaked at a higher level:
between 8.2 and 9.3 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 26,800 to 80,300 in Ohio in
the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON OKLAHOMA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND OKLAHOMA:
o During the recession of 1990-1992, the unemployment rate in
Oklahoma was steady at 5.4 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Oklahoma would have peaked at a higher
level: between 5.7 and 6.0 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 2,100 to 6,400 in Oklahoma
in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON OREGON JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND OREGON:
o During the recession of 1990-1992, the unemployment rate in
Oregon rose from 5.6 percent to a peak of 7.4 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Oregon would have peaked at a higher
level: between 7.8 and 8.6 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 5,900 to 17,700 in Oregon
in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON PENNSYLVANIA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND PENNSYLVANIA:
o During the recession of 1990-1992, the unemployment rate in
Pennsylvania rose from 5.0 percent to a peak of 7.7 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Pennsylvania would have peaked at a
higher level: between 8.3 and 9.6 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 33,700 to 101,200 in
Pennsylvania in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON RHODE ISLAND JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND RHODE ISLAND:
o During the recession of 1990-1992, the unemployment rate in
Rhode Island rose from 7.0 percent to a peak of 9.1 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Rhode Island would have peaked at a
higher level: between 9.6 and 10.6 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 2,300 to 6,900 in Rhode
Island in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON SOUTH CAROLINA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND SOUTH CAROLINA:
o During the recession of 1990-1992, the unemployment rate in
South Carolina rose from 4.7 percent to a peak of 6.1 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in South Carolina would have peaked at a
higher level: between 6.4 and 7.1 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 5,400 to 16,300 in South
Carolina in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON SOUTH DAKOTA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND SOUTH DAKOTA:
o During the recession of 1990-1992, the unemployment rate in
South Dakota FELL -- from 3.8 percent to 3.1 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in South Dakota would have been higher
in June 1992; between 3.3 and 3.6 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 500 to 1,500 in South
Dakota in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON TENNESSEE JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND TENNESSEE:
o During the recession of 1990-1992, the unemployment rate in
Tennessee rose from 5.1 percent to a peak of 6.4 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Tennessee would have peaked at a higher
level: between 6.7 and 7.3 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 6,900 to 20,600 in
Tennessee in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON TEXAS JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND TEXAS:
o During the recession of 1990-1992, the unemployment rate in
Texas rose from 6.2 percent to a peak of 7.8 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Texas would have peaked at a higher
level: between 8.2 and 8.9 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 30,700 to 92,200 in Texas
in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON UTAH JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND UTAH:
o During the recession of 1990-1992, the unemployment rate in
Utah rose from 4.3 percent to a peak of 5.0 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Utah would have peaked at a higher level:
between 5.2 and 5.5 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 1,300 to 3,900 in Utah in
the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON VERMONT JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND VERMONT:
o During the recession of 1990-1992, the unemployment rate in
Vermont rose from 5.0 percent to a peak of 6.9 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Vermont would have peaked at a higher
level: between 7.3 and 8.2 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 1,300 to 3,800 in Vermont
in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON VIRGINIA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND VIRGINIA:
o During the recession of 1990-1992, the unemployment rate in
Virginia rose from 4.3 percent to a peak of 6.4 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Virginia would have peaked at a higher
level: between 6.9 and 7.9 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 15,400 to 46,200 in
Virginia in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON WASHINGTON JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND WASHINGTON:
o During the recession of 1990-1992, the unemployment rate in
Washington rose from 4.7 percent to a peak of 7.4 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Washington would have peaked at a higher
level: between 8.0 and 9.3 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 15,200 to 45,700 in
Washington in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON WEST VIRGINIA JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND WEST VIRGINIA:
o During the recession of 1990-1992, the unemployment rate in
West Virginia rose from 8.1 percent to a peak of 11.3 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in West Virginia would have peaked at a
higher level: between 12.0 and 13.5 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 5,000 to 15,000 in West
Virginia in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON WISCONSIN JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND WISCONSIN:
o During the recession of 1990-1992, the unemployment rate in
Wisconsin rose from 4.3 percent to a peak of 5.2 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Wisconsin would have peaked at a
higher level: between 5.4 and 5.8 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 5,300 to 15,800 in
Wisconsin in the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
THE IMPACT ON WYOMING JOBS IF A BALANCED BUDGET
AMENDMENT HAD BEEN IN PLACE DURING THE RECESSION
OF 1990-1992
THE BALANCED BUDGET AMENDMENT AND WYOMING:
o During the recession of 1990-1992, the unemployment rate in
Wyoming rose from 5.4 percent to a peak of 5.8 percent.
o Had the balanced budget amendment been in effect, the
unemployment rate in Wyoming would have peaked at a higher
level: between 6.0 and 6.3 percent.
o Thus the balanced budget amendment would have led to an
additional rise in unemployment of 300 to 1,000 in Wyoming in
the recession of 1990-1992.
THE BALANCED BUDGET AMENDMENT AND THE UNITED STATES:
o During the recession of 1990-1992, the unemployment rate in
the United States rose from 5.1 percent to a peak of 7.7
percent in June of 1992.
o Had the balanced budget amendment been in effect, the
unemployment rate would have peaked at a higher level: in the
range of 8.3 to 9.4 percent.
o Thus the balanced budget amendment would have led to a rise in
nationwide unemployment of 750,000 to 2.3 million in the
recession of 1990-1992.
WHY DOES A BALANCED BUDGET AMENDMENT RAISE UNEMPLOYMENT?
Under current law, spending on federal government programs like unemployment compensation and food stamps automatically increases as the economy goes into recession. In addition, as people earn less money as a result of a recession they pay less in taxes. These changes in spending and taxes affect the federal deficit. The increases in the federal deficit during recessions are "automatic stabilizers" that reduce the damage done by recessions to the American economy and American workers.
A balanced budget amendment would force the government to raise taxes and cut spending in recessions -- at just the moment that raising taxes and cutting spending will do most harm to the economy, and aggravate the recession.
SUMMARY OF METHODOLOGY
o From the cycle peak in June 1990 to the unemployment rate peak in
June 1992, the unemployment rate rose by 2.6 percentage points.
o Using a (low estimate of the) Okun's Law coefficient of 2, and an
automatic stabilizer magnitude (estimated over 1953-1994) of 0.27,
the associated cyclical swing in the deficit is some 1.4 percentage
points of GDP.
o In the absence of automatic stabilizers the Keynesian multiplier
would be higher than we usually assume. Estimate the multiplier in
the absence of automatic stabilizers at 1.7, as opposed to 1.2 in
the presence of automatic stabilizers.
o Thus the downward shock to exogenous demand of 1.4 percent of GDP
administered by the tax increases and spending cuts necessary to
offset the cyclical component of the deficit would have depressed
GDP by some 2.4 percent.
o Using an Okun's law coefficient of 2, the central scenario estimate
of the extra rise in unemployment in the absence of automatic
stabilizers is 1.2 percentage points.
o Obtain a favorable scenario by assuming that Federal Reserve action
manages to offset half of the increase in the size of the
recession.
o Obtain an unfavorable scenario by assuming that the size of
automatic stabilizers has trended upward in the post-WWII period,
and using a higher Okun's law coefficient of 2.5.
o Distribute the rise in the unemployment rate across states
proportionately to their 1990-1992 recession-driven increase in
unemployment.
- Institutional AuthorsU.S. TreasuryOffice of Economic Policy
- Index Termsbudget, federal, balanced budget amendmentbudget, federal, deficit reduction
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 95-2400 (59 pages)
- Tax Analysts Electronic Citation95 TNT 40-17