Requiring the federal government to maintain a balanced budget is unrealistic because of the certainty of the unknowns. Examples of the unknowns can be seen as major natural disasters such as hurricanes and other severe weather-related damage. Not to mention at any given time our nation may be at war with other countries which can consume billions of dollars at any given time. Since states do not have the means to print their own money, they must adhere to strict budgets as they cannot monetize their debt. Many states throughout the years have created rainy day funds which allow them to offset any bi-yearly budget shortfalls in case of a chaotic market failure. The federal government has different approaches to finance public goods. 1) They can spend tax money or 2) they can borrow against the deficit. This allows the government the flexibility to provide goods to the public. However, fiscally irresponsible actions can have a traumatic effect. Borrowing to finance public expenditures postpones the tax burden to the future. A budget surplus adds to national savings and can lower interest rates and increase investments. As deficits and debt increase, more tax revenue must be allocated to paying interest on the debt rather than providing government goods and services. .