The CA Economy re: a statement Bill made

[otterdiver]

Bill in another thread you put forth:

Originally Posted by Bill McIntyre

Everyone seems to focus on the debt effects of Keynesian economics, but they forget that while we are supposed to run budget deficits to get us out of recessions, we are also supposed to run budget surpluses during good times. Then we can afford the deficits during the next recession. But Cheney was publicly quoted saying "deficits don't matter." I think he was talking about politics rather than economics, but in any case the Bush administration ran record budget deficits during good times. That doesn't leave Obama much room. The last President who tried to balance the budget during a recession was Hoover, and that helped cause the Great Depression. If Obama tried to balance the budget now, either the Republican way- cut spending- or the Democratic way- increase taxes, or some of each, it would likely have the same effect.

Did we shoot ourselves in the foot in this state by requiring a balanced budget? A balanced budget sure sounds good in theory but for the next few years it going to HURT!