Dr. Martin Hash Podcast

Article I, Section 8, Clause 2 of the Constitution grants to the U.S. Congress the power to borrow money on the credit of the United States. In 1798, a decade after adoption of the Constitution, Thomas Jefferson wrote, “I wish it were possible to obtain a single amendment taking from the Federal Government the power of borrowing.”

A Balanced Budget Amendment is a constitutional rule requiring that the nation cannot spend more than its income. It requires a balance between the projected receipts and expenditures of the government. Other countries, like Germany, Hong Kong, and the Swiss have balanced budget requirements in their Constitutions. In 1985 & 1987 U.S. legislation attempted to curb government borrowing, and in 1983, an effort to add a Balanced Budget Amendment passed in 32 of the 34 States required to trigger a Constitutional Convention. All failed.

The fact is, having a federal debt has substantially helped everyday Americans because the yearly Budget Deficits are mostly to cover social programs, so the problem isn't spending on things that The People want, the problem is paying for it. Understandably, human nature is such that people don't like paying taxes and the people who would pay the most, The Rich, have tremendous amounts of money fighting against taxes, so it seems unlikely a Balanced Budget Amendment will occur, but even if it does, the solution is not to cap spending, or even borrowing, the solution is much more fundamental & simple than that. Firstly, the focus must be on revenue: Government must raise taxes to equal The People-approved spending. Secondly, Government cannot accrue future financial obligations, which means no pensions, no bonds, and no “trust” funds.

That's it, that's the Balanced Budget Amendment.