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Our federal government debt is an immoral burden on young Americans, and if not prudently managed will destroy our republic and our freedom. Many a great nation has been destroyed by government debt.
America’s debt ($18.37 trillion) is greater than our national GDP ($17.9 trillion). Worse, these debt figures do not accurately include the expanding costs of Medicare, Medicaid, Social Security and the increasing costs of ObamaCare. Laurence Kotlikoff of Boston University calculates the fiscal gap (promised expenses less tax revenues) at approximately $200 trillion. Immorally and fiscally reprehensible, America’s political leaders are persistently ignoring and misleading the American public concerning the enormous debt burden. As Hans F. Sennholz, a great economist dedicated to freedom wrote,
Wherever politics intrudes upon economic life, political success is readily attained by saying what people like to hear rather than what is demonstrably true. Instead of safeguarding truth and honesty, the state then tends to become a major source of insincerity and mendacity.
Dishonorably and dangerous, insincerity and mendacity wins elections, and, unfortunately, it's at the expense of our children and grandchildren. Again, Sennholz explains that future workers must pay the debt,
A government debt is a government claim against personal income and private property – an unpaid tax bill.
How does America stop the excessive spending and the expanding, governmental debt? Sadly, We the People cannot expect our popularly elected Presidents, Senators and Members of Congress to be responsible. Politicians love power, status and adulation. Borrowing and spending other people’s money maintains their status and power.
The most rapid opportunity is a balance budget amendment achieved by a compact among 38 states. Have you ever heard of a compact among the states? Few people have...including me. However, a group of very, concerned citizens, legal scholars, former politicians and just plain smart people have created the Compact for America. And...better yet, four states have passed legislation seeking a balance budget amendment. Go, America!
The following are a few of the critical highlights of the amendment:
It limits federal spending to tax cash flow with the sole exception of borrowing.
Borrowing is limited to105% of the outstanding debt on the date of enactment.
Only state legislature can increase the debt limit.
New taxes passed by simple majorities in the U.S. House and Senate are limited to 1) the replacement of all income taxes by a non-VAT sales tax; 2) the elimination of tax loopholes; and 3) new or increased tariffs and fees.
Article V of the Constitution requires that thirty-eight State legislatures pass the Balance Budget Amendment. Then, it only takes majorities in the US House and Senate to enact the amendment as part of our Constitution. In short, the Compact for a Balanced Budget consolidates everything Congress and the States do in the Article V process into two, overarching pieces of legislation; congressional legislation and an interstate compact joined by 38 states.
In 1990, there were serious attempts in the US House and Senate to pass a balanced budget amendment, which would require ratification by 38 states. However, the House and Senate never met the two/thirds votes required under Article V. Honestly, America’s political elites didn’t want the balanced budget amendment and connived to make sure they were a few votes short of passage. And so, our debt skyrocketed under our Democrat and Republican leaders. The Compact for America is the most viable cure to popularly elected Presidents, Senator and Members of Congress, who incessantly use every trick in the book to expand the debt to get themselves re-elected.
Please, read about the Compact for America and badger your state officials to pass the Balanced Budget Amendment. You and your state elected officials are the only countervailing force to a corrupt Federal government that is every increasing our national debt.