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A government debt is a government claim against personal income and private property – an unpaid tax bill. —Hans F. Sennholz
Throughout the Obama reign and since Rep. John Boehner (R-OH) has been Speaker of the House, our national debt has increase by $2.678 trillion. Sadly, Boehner has repeatedly voted for spending increases during the Bush II and Obama presidencies. Recently, Logan Albright of FreedomWorks added up the staggering debt voted in favor by Rep. Boehner, which during the Bush II years Boehner voted to raise the debt limit in 2002, 2003, 2005, and 2008 for a total increase of $3,631 trillion.
What's worse is America’s debt is at least $18 trillion today, and Obama, Pelosi, Reid and most-likely Boehner are seeking to raise it again. Again?
What every American Must Ask – Especially the Young:
Who pays for excessive spending? Answer: Every Federal taxpayer.
Who pays for money borrowed by the government? Answer: Future taxpayers.
Does government debt cause inflation? Most often government debt causes inflation – higher prices for goods and services. This decreases the value of money and assets. Thus, every American suffers, even the young and unborn.
In Essence, Every American is Taxed when Government Spending Exceeds Revenue:
Here is Nobel Laureate Milton Friedman’s admonition:
Keep your eye on one thing and one thing only: how much government is spending, because that’s the true tax ... If you’re not paying for it in the form of explicit taxes, you’re paying for it indirectly in the form of inflation or in the form of borrowing. The thing you should keep your eye on is what government spends, and the real problem is to hold down government spending as a fraction of our income, and if you do that, you can stop worrying about the debt.
Unfortunately, Boehner, Obama, Reid, Pelosi and many other Democrats and Republicans spend money today and stick the debt to future Americans. This is morally wrong. Worse, it is dangerous. Just ask the Greeks.
The Solution: Constitutional Amendment Limiting Spending to a “fraction of our income.”
In the 1990’s, Poland passed a law limiting the debt to 60% of Gross Domestic Product (GDP). Poland, a former communist country, has one of the fastest growing economies in Europe This is exactly what Friedman said, “…hold down government spending as a fraction of our income (GDP).”
Americans needs a constitutionally-defined debt limit. Every American must demand at debt limit of 60% of GDP.