Chapter 4R, Problem 5CTQ

To determine

To reason why people still choose lawmakers who do not maintain a balanced budget.

Explanation of Solution

Lawmakers are people elected by the citizens through general elections. People consider a balanced budget as one of the determinants of who will work for them or not.

Following are the reasons for people to still elect lawmakers who do not maintain a balanced budget for them: -

• A balanced budget may not be maintained because of the subsidies to attract the votes of the weaker section of society.
• A balanced budget may not be maintained because of tax relaxations given to specific sectors.
• A balanced budget may not be maintained because government brings in loans from foreigners to support domestic businesses.
• A balanced budget may not be maintained due to waiving off of student loans and farmers’ loans.