A budget freeze in the USA is when a budget for an aspect of government or business is fixed- or frozen- at a specific level. One can be applied in a business to increase profits as well as in a government, often to reduce taxes. Budget freezes become especially notable in difficult economic situations. In these cases, businesses can have problems acquiring funds, necessitating a reduction in spending. During times of economic or financial crisis, the government also loses revenue and faces pressure to lower tax burdens. This means that budget freezes may be used as a way of reducing money spent. Reasons for a budget freeze in the USA There are many different reasons for a business or a government to implement a budget freeze. In the case of a loss of profit or tax revenue, the budget may need to be cut or frozen so that a company or a government does not spend more than its intake. An excess in spending can also necessitate a budget freeze. Government In government, a politician may implement a budget freeze to lower the amount of money spent on programs or wages, thus allowing a decrease in taxes. Some argue that while these politicians want credit for reducing- or at least not increasing- taxes, they want nothing to do with the result of these reductions (losses in Welfare, freezes on teachers’ wages). Business When businesses face losses or increases in prices, they can also implement budget freezes to fix spending and prevent further loss in profits. This is especially true during times of economic difficulty. Effects of a budget freeze A reduction in the amount of money spent is the most obvious and intended effect of a budget freeze. But a budget freeze can have other- often unintended- consequences. When a government freezes a budget, taxes can be reduced. When a budget freeze successfully lowers the amount of money that a business or government spends, the act of freezing the budget can gain positive media for saving money. Some believe that this, rather than the actual reduction in costs, is often the reason behind a budget freeze. When a budget freeze is aimed at the amount of money spent on wages, many workers are denied benefits, bonuses, and wage increases. Governments can use budget freezes on organizations and programs that they fund. While this does decrease the budget and save money,