Question

Is it possible to balance the federal budget if the population in the United States is not controlled?

Answer 1

The balanced budget occurs when government revenue and expenditure are equal. The government can go with an unbalanced budget during the recession or depression but during the boom period, the government must reduce its expenditure.

When the population rises, it becomes difficult for the government to reduce its expenditure. The government has to make expenditure on various social programs and health care facilities. Thus, it becomes difficult to reduce the deficit in such situations. The government needs to increase its source of income. The expenditure side must be rationalized appropriately. If the government does not reduce the deficit during the phase of prosperity, it would be difficult to address the crisis period if it hits the economy.

Thus it is possible to reduce the deficit when the population rises provided the government is either able to increase its sources of revenue or reduce the inappropriate expenditure or both,