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Balanced Budget
Amendment |
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"For
more than 60 years, Congress has run
a deficit in every year but a couple - with most of those
occurring in the 1950's and 1960's.”
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I
do not trust Congress to reduce spending to lower our debt ratios.
The United States Congress knows how to spend money – usually much
more than is raised in revenue in any year – leading to our
exploding public debt.
Without some system to force financial discipline, we will
continue to see greater expenditures, leading to increasing debt
levels. We can't borrow our way to prosperity, but we can borrow
our way to a disastrous financial future for our children.
In the
attached chart,
you can see from the 1950's to the early 1980's we had deficits,
but they were small and the overall Debt to GDP ratio declined to
a low of 32%. Starting in 1982, we began to spend a lot more than
we received in revenue, and at a much faster rate than the economy
grew, |
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leaving us today with a Debt to GDP ratio over 90%. This is
forecast to grow to over 100% in the next several years as
Congress and the Administration have no viable plan to curtail
spending. There are many economists who view a ratio above 90% as
a very dangerous level that can lead to long term economic
stagnation. I agree with this assessment.
With 10,000 Baby Boomers electing to start Social Security every
DAY, the cost of two wars, the worst financial crisis since the
Great Depression, and a looming Medicare and Medicaid disaster,
they will find any reason to avoid making tough choices. This can
no longer be an option as it’s time for responsible citizens to
force a change. While it’s not an immediate solution, I believe we
must:
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Initiate the
process to adopt a Balanced Budget Amendment with the intent
to try and adopt it as soon as possible. The amendment will
mandate Congress appropriate no more than the Congressional
Budget Office forecasts will be available in revenue based
on current law.
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To enforce
spending limits, the amendment will give the President Line
Item Veto authority. If Congress fails to produce a budget
that balances revenue and expenses, the President must veto
line items in the budget to bring it to the CBO estimate.
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Recognizing
unforeseen circumstances might lead to a need to deficit
spend (a major natural disaster, for example), Congress can
increase spending IF 60% of the sitting members of Congress
approve the increase. This would be not be based on the
Senate and House voting separately but on a total vote by
Congress to avoid either chamber from stonewalling a
decision. If all 535 members are seated, affirmative votes
by 321 members would be sufficient to increase the spending
limit. |
J.
Wellington Wimpy, a great character from old Popeye cartoons, had
a saying that captures the essence of Congressional failures:
"I would gladly pay you Tuesday for a hamburger today."
Congress will always ask to pay for things later so they don't
have to face tough choices today. Unfortunately, it's not us who
will have to pay the bill; it's our children who will pay it –
with interest !
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It's time for
fiscally responsible, independent representation for NH
in Congress
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It's
time for Tim !
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