Unclassified Submission from Snapshot User
Ideally, the government would follow John Manyard Keynes’ policies—when the economy is doing poorly, the government should cut taxes, increase services, and run defecits, and when the economy is doing well, the government should raise taxes, cut services, and run surpluses equal to the recession deficits.
But because raising taxes and cutting services is politically impossible, the government should try to always run a balanced budget regardless of the economic or political situation. When the government needs more money to operate, they should raise taxes first.