American Enterprise Institute and Balanced Budget Now yesterday co-hosted a 3.5-hour, all-star forum focused on how to address the national debt crisis. Link (start at 21:20).
The big take-away: a consensus has now emerged among opinion leaders that only a constitutional amendment can restrain Congress’ appetite for debt and that the states must force this to happen by using their Article V power.
Florida Governor Ron DeSantis: “Elon and DOGE fought the swamp and the swamp won.”
Former New Hampshire Governor Chris Sununu: “The states must use their Article V power to [force Congress to take action].”
Montana Senator Steve Daines: “[Congress is running] a very dangerous experiment … and lacks the will to do anything.”
House Budget Committee Chair Jodey Arrington: “The most shocking set of facts presented to me [are that the states have already submitted the required number of applications].”
Committee for a Responsible Federal Budget President Maya MacGuineas: “No country has continued as a superpower when interest costs are greater than defense … we are immensely vulnerable to non-allies [financing our debt].”
Former Comptroller General and FFSF Chair Dave Walker: “The only thing that will restore fiscal sanity and sustainability is a constitutional amendment that will force Congress to make the tough choices.”
Balanced Budget Now! and Federal Fiscal Sustainability Foundation both back panel consensus that only an amendment can restrain Congress and that the states must lead by using their Article V power to get an amendment ratified. We have now won this central argument in the high court of expert opinion.
FFSF and BBN differ on these substantive matters:
BBN counts 28 states having active (unrescinded) single-subject fiscal responsibility amendment applications (FRAs). BBN is organizing to persuade five more state legislatures (just short of 34) to pass single-subject FRAs under the assumption that Congress will respond to state pressure by drafting its version of an FRA for subsequent ratification. This approach addresses fear among opponents of the hypothesized “runaway convention.”
FFSF (and National Federalism Commission) count 34 or more states having unrescinded FRA and plenary applications for over two decades during the years 1979-2004 and 2016-2017, thereby having triggered Congress’ continuing obligation to call a convention where the states would draft an FRA for subsequent ratification. This approach depends upon pending state litigation determining that post-2017 rescissions do not void Congress’ obligation to call and that Congress may not abuse its very limited Article V discretion by failing to count all applications addressing federal fiscal sustainability plus “plenary” applications permitting consideration of all subjects.
The key strategic distinctions: (1) years to ratification, and (2) who drafts the amendment, Congress or the states.
FFSF considers it possible that the simple act by the states of filing this litigation (which could happen within months) could propel Congress to propose an FRA without waiting for convention-phobic blue states to pass new applications and soon enough to mitigate fiscal meltdown. Should Congress not react and litigation succeed, the states will draft the needed amendment in the states’ interest, which differs from Congress’.
The states are highly vulnerable right now to the debt crisis and have a compelling interest in drafting amendment language to protect themselves. States now obtain an average of 37% of their revenues from federal grants and aid, ranging from North Dakota at 24% and Louisiana at 51%. The most likely fiscal crisis scenario is a global bond-market imposed spike in interest rates on federal debt, forcing Congress to choose between punishing inflation and sudden and draconian budget cuts, with state aid bearing the brunt. Congress will preferentially protect debt service, Social Security, Medicare, and national security spending.
We do not know which amending strategy will get us to fiscal sustainability soon enough. FFSF, BBN, and Convention of States should all work together wherever possible to advance our mutual interest in protecting American prosperity, national security, and social stability.
New Poll: Overwhelming Support To Address Political Corruption
A new Brennan Center poll finds that voters:
View corruption as permeating all government institutions (Republicans 90%, Democrats 93, Independents 93%). About half of all voters of both parties think that their own representative in Congress is corrupt!
Think that government officials prioritize staying in power over serving the public (R 95%, D 96%, I 94%).
Think corruption is responsible for big problems going unaddressed (R 85%, D 92%, I 89%).
Want a campaign money limits amendment (R 75%, D 84%, I 81%).
Want mandatory contributions and spending disclosures (R 85%, D88%, I 84%).
Americans are united around amending to repair our biggest structural problems.
Comments
Nothing yet. Say the first thing.
Sign in to join the conversation.