Monday, February 10, 2014

Publius Huldah on Balanced Budget Amendments

Here's the gist of Publius Huldah's argument:

"We hear, “balanced budget amendment”, and think, “I have to balance my budget; they should have to balance theirs.”  So we don’t read the amendment, we just assume they will have to balance theirs the same way we balance ours – by cutting spending.
But that is not what the BBA does.  In effect, it redefines “balancing the budget” to mean spending no more than your income plus the additional debt you incur to finance your spending.  To illustrate:  If your income is $100,000 a year; but you spend $175,000 a year, you “balance” your budget by borrowing the additional $75,000.  See?
Under the BBA, Congress may continue to spend whatever it likes and incur as much new debt as it pleases - as long as 26 States agree.  And since the States have become major consumers of federal funding, who doubts that they can’t continue to be bought?  Federal grants make up almost 35% of the States’ annual budgets!  The States are addicted to federal funds – who thinks they won’t agree to get more money?
The BBA enshrines Debt as a permanent feature of our Country; gives it constitutional approval; does nothing to reduce spending or “balance the budget”; authorizes a new national tax; and wipes out the “enumerated powers” limitation on the federal government."
Read the facts that support the opinions here: