The Sorry Politics of the Balanced Budget
balanced budget amendment (BBA) is again on the nation's agenda and, as of this writing, is again unlikely to pass this time because of the combined opposition of President Bill Clinton, Treasury Secretary Robert Rubin, and Federal Reserve Chairman Alan Greenspan. However, there is no reason to think it will not raise its head again and again in coming years. We should put the danger of the BBA in clear perspective and perhaps bury it once and for all, so that policymakers can focus on the real challenge of achieving sustainable fiscal balance.