The National Debt

Edward Gonzalez advocates an amendment to The Constitution mandating a balanced budget.


Problem:  The federal debt is out of control.  Politicians who serve in office borrow massive amounts of money to fund their personal programs and are out of office by the time the debt is to be paid back. This distorts the economy by pulling scarce resources away from productive businesses and puts future tax payers in debt to the holders of U.S. Treasury Bills.[1]


Goal:  The United States Federal Government to be debt free.


Solution:  The solution is an amendment to The Constitution requiring a balanced budget.  The government has only one means of attaining wealth to fund their services: taxes.  Debt is another secret and deceptive tax that makes it impossible for individuals to understand exactly how much certain government programs cost in the moment. 


 Individuals bring the concern that in the case of an emergency, the government might need to go into debt.  Again, the point is that this is still a tax.  Borrowed money is still being spent in the moment and must be paid back by tax payers in the future.  In an emergency situation, like a full scale invasion of our country, taxes will have to rise significantly.  If the government needs more money to fund a war or deal with any other emergency the government will need to raise taxes.  Not allowing debt will allow the American people to see firsthand how much a so-called "emergency" is costing them.


 



 


[1] http://www.brillig.com/debt_clock/