The Case Against a Balanced Budget Amendment Passing a balanced budget amendment to the constitution will not solve this country‘s financial problems. Most importantly it will not affect the huge national debt of 15 trillion dollars that our government has accrued over the last 70 years.
It is a certainty that the three governing bodies in Washington that can spend money, the president, the house and the senate, will spend every penny that is received in the treasury.
A balanced budget simply allows the politicians to continue to pay only the interest on the national debt and pay nothing on principal reduction. Currently the fools in Washington have no plan to reduce our national debt by even a penny. They won’t even talk about reducing the debt, just slowing down the rate that we accumulate more debt.
How about instead of a balanced budget the congress and the senate pass a constitutional amendment that limits spending to only 95% of the revenues that come in to the treasury. The balance, 5%, would be paid against the national debt principal.
At current revenues, 5% would be about 10-12 billion dollars per month. Nice chunk of change, but wait for it, here it comes…. it will take 114 years to pay off only the principle! Factor in the interest and it will take close to 150 years to pay off the national debt, at 5%. That’s seven generations!
What the H_ _ _ have we allowed our government and politicians to do to us! How do we fix this? Here’s part of the solution! Cut congressional and senatorial budgets in half, and eliminate all the perks. Tie all federal paychecks to government income.
All budgets will be based on the previous quarter’s revenues, if revenues increase budgets are bigger, if revenue is lower budgets are low for the next quarter. This will force the congress, senate and the president to enact laws and regulations that will stimulate the economy to increase revenues, and quickly rescind those that are detrimental to the economy. Earmarks will disappear.
There will be no bonuses, ever. Raises for the members of the three branches of government will be voted on by the people! Presidential edicts need to be eliminated from the bag of tricks available to the president. All cabinet level departments (HEW, Energy), agencies (EPA), and government sponsored enterprises (such as Fannie Mae and Freddie Mac) will be scrutinized for positive or negative affects on the economy, and benchmarked for effectiveness.
Those organizations that negatively affect the economy, or are ineffective will have their budgets reduced annually until they become effective, or they are gone. The extra money can only be spent on the national debt principal. Foreign aid must disappear. Loans to other nations must stop. No more bailouts or loans for failing countries or industries. It’s make it or break it time!
The current administrative czar’s should be eliminated. Extra money to pay on the debt. Any new agencies should be approved by the people at the ballot box. Corruption in the three branches of government should be investigated by a civilian commission. Congress should not investigate themselves. Corruption should be considered treason. Exceptions being the department of defense and the intelligence agencies. The defense department which would be fully funded, other than annual reductions to their budget for failed projects, project cost over runs, and excessive charges for maintenance items, such as $900.00 hammers that actually cost $20.00.
This will force the defense establishment to be more fiscally responsible. Waste can not be tolerated. The intelligence agencies should be combined, and redundant jobs eliminated. More money to pay off our debt. Slowly and surely government will get smaller, more efficient and more effective. Maybe our debt can be paid off by the twenty second century! Some day we may get our country back from the people that currently own it!
W. Les Wernli