Is a balanced budget amendment the only solution to the nation’s long term fiscal problems?
Some have been in favor of a balanced budget amendment. One of the major goals of the Tea party was a balanced budget amendment. During the previous debt ceiling fight, opponents of the Tea Party used the impasse to paint the tea party as extremists.
History has already, and will continue to prove, that a balanced budget amendment will be the only way to solve the problem, as politicians absolutely cannot restrain themselves from overspending and borrowing.
The countries massive deficits really took off in the 1980’s. In the past 30 years, the country has had a surplus for three years in the late 1990’s and 2000. Recently, some politicians have said that a balanced budget amendment is not needed, stating, to the effect, that they don’t need an amendment to do their jobs.
However, in almost the entire last 30 years, the politicians have not done their jobs balancing the budget. They have talked fiscal responsibility, about balancing the budget, but just don’t accomplish it.
As a result, they must be forced to do so. The national debt has gone from approximately $9 Trillion to over $14 Trillion in just the last 3 years. Even if the new debt commission agrees to an extra $3 Trillion in spending cuts over the next 10 years, for a total of approximately $4 Trillion in cuts, that won’t come close enough to balancing the budget.
If the annual deficit, currently approximately $1.4 Trillion dollars, or an astounding 40% of the budget, goes down significantly, to an average of $750 Billion per year, over the next 10 years, that would still be an increase in the national debt of approximately $3.5 Trillion. If the deficit averaged $1 Trillion during that same period, the increase in the national debt would be approximately $6 Trillion dollars, for a balance of approximately $20 Trillion at the end of the term, even if the debt commission is successful.
It is clear that a balanced budget amendment is the only solution to the nation’s long term fiscal problems.
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