In recent days, both Rich and Ramesh have come out against the idea of a balanced-budget amendment with spending limitations (Rich here, Ramesh here). In particular, they both dislike the idea of requiring Congress to move on the proposed resolution (S. J. Res. 10, which would then go to the states for ratification) as a condition of raising the debt limit — an idea that has already been endorsed by dozens of Republican members of Congress.
The most basic reason why we have a debt-limit crisis now is that we have allowed the federal government to grow so far beyond its enumerated powers that we are up against artificial debt limits as virtually a last defense against its relentless growth. This is not a fiscal crisis — it is an attempt to halt the very accumulation of federal power that the Federalists promised us would never happen. It’s a constitutional crisis, and it cannot be fixed merely by holding the line on taxes and securing deep spending cuts in the short term.
What has long been clear to many constitutional scholars is now intuitively obvious to Americans of all stripes: The relentless expansion of federal power is destroying self-government at every level of society besides the national one — and with it, the self-reliance and independence that made this country great. It is difficult any longer to see what stands between us and a statist tyranny of the majority. Supporters of the balanced-budget amendment are trying to erect a shield against unrestrained federal power. Conservative skeptics should to do more than say, “Well, that won’t work.”
As Arthur Brooks writes in an instant classic on what’s really at stake in the debt-ceiling talks, “We need tectonic changes, not minor fiddling.” If not a constitutional amendment, then what? Arthur Brooks’s column is a call to action — “hard work for at least a decade.” But what exactly is our objective, if not to revive constitutional protections against the vast accumulation of central government power that the Framers equated with tyranny, and which Brooks terms “statism” and “the welfare state”? Brooks supports Rep. Paul Ryan’s plan — but it would require supreme political will to carry that plan through, and as soon as we let our guard down, we’d be right back where we are now. That’s because tectonic changes over the past 70 years have taken us away from a Constitution of limited powers and toward a dynamic of unlimited federal expansion.
Both Rich and Ramesh point out that state governments rely so much on federal funds that they would never vote to limit federal spending. But here’s the thing: Those federal funds are conditional, and the conditions are paralyzing state governments’ ability to respond to their citizens’ desires and ideas. They face immediate political danger because they are increasingly unable to provide real representation for those they represent. Conditional federal funds have become a hated fixture of state-budget battles. Indeed, even liberal justices of the Supreme Court have seen conditional federal grants as perhaps the greatest threat to federalism. Washington gets all its money from the states, and then returns it to them only on condition that they adopt federal preferences on a whole range of state policy issues. From the point of view of state legislators, this is not a source of support, it’s a straight-jacket. It’s their money to start with, and most of them would far rather spend it themselves on home-grown ideas. Even among those states that shamefully use the federal machinery to go rent-seeking among their more productive sisters, many state governments would vote to be rid of federal grants altogether if they could keep the tax revenue that finances them.
Rich argues that we shouldn’t adopt amendments that are bound to be suspended by one exception after another, because ignoring the Constitution inevitably weakens it. I completely agree, but we are way past that point already. Federal power has exploded far beyond any concept of limited government that you can find in the text of the Constitution. We’re talking about restoring some semblance of a federal Constitution of limited powers, not preserving an interpretation of it that allows temporary majorities in Congress and the Supreme Court to wreak whatever havoc they please in every corner of our society.
Conservatives need to achieve a consensus on a way to revive constitutional limitations and protect against the manipulation of the federal machinery by those bent on confiscations of property as the means to achieve “social justice.” If you don’t like the constitutional amendment proposed by 47 Republican senators and all the conservatives in the House of Representatives, then let’s please move right along to the consideration of an alternative.
— Mario Loyola is director of the Center for Tenth Amendment Studies at the Texas Public Policy Foundation
Amen. We have to put restrictions on the federal government every chance we get. Every one of us can point to an outrageous example of federal government overreach. Probably far more than one.
Just do it.
Reply to this commentLinkReport Abuse"Washington gets all its money from the states"
Uh huh.
Reply to this commentLinkReport AbuseAlmost all monies in Washington comes from taxing the states citizens. Do they give some back? Yes, with strings attached. Not to mention they took it from them to start with. Nice racket.
Reply to this commentLinkReport AbuseIt's worth pointing out at this point that for the most part, Democratic leaning states send more money to the federal government than Republican leaning states - so in effect, Democrats do put their money where their mouth is, while Republicans, for the most part, do not. Hypocrisy at its finest.
Reply to this commentLinkReport Abusecan you provide a link to a well regarded study that supports your contention?
Can you tell me what difference this makes in the current situation?
Reply to this commentLinkReport AbuseHow is it hypocrisy? Republicans, for the most part, are for lower federal spending which would indeed benefit citizens of Democrat leaning states more. So if taxes and spending is cut those states would see the most benefits. That is hardly hypocrisy.
Reply to this commentLinkReport AbuseWhile I am all for CCB bill, lets take a look at the laws congress ignores when it suits their political needs.
Reply to this commentLinkReport AbuseWhen was the last time we had a budget? That's just one.
We need to figure out how we can remove those not doing their jobs without having to wait till the next election. 6 years may not seem like a long time but for a politician it is. They have 6 years to add their own spin on what they failed to do.
I agree that to get what you want ultimately in terms of your vision for the country, you will need tectonic change. But why do you think you will ever get it? It seems that the more likely outcome isn't that you will get tectonic change. It is that you will simply not get what you want, at any point. The "then what?" is you not getting what you want, in terms of your governing vision.
The reason for this is that most people simply do not buy what you are selling. They want Mediare/Social Security/etc maintained or increased, and paid for by taxes on the rich. Even a plurality of your own party wants all of that.
What makes you think that an electorate would elect representatives that would support amendments that would require the exact opposite of their own position, when that became clear to them?
I don't think there will ever be a balanced budget amendment. But in the hypothetical universe where one is passed, it is far more likely that the amendment's enforcement mechanism would be automatic, steeply-progressive tax hikes, than benefit cuts for Americans. Be careful what you wish for.
Reply to this commentLinkReport Abuse"The reason for this is that most people simply do not buy what you are selling. They want Mediare/Social Security/etc maintained or increased, and paid for by taxes on the rich. "
I want a pony with wings to fly to work every day.
...
Sometimes what we want has nothing to do with reality.
No amount of "taxes on the rich" will cover an increase in the social welfare state. It simply won't work. We can't afford it. There's a breaking point where increased federal taxes result in less federal revenue because the generation of the taxed wealth has simply gone somewhere beyond federal jurisdiction (Ireland up until recently, for example).
Telling people we can't afford it and figuring how to keep the lights on, maintain our national security, and keep Grandma from having to eventually get back in that breadline will require leadership, not pandering.
Reply to this commentLinkReport AbuseThe beyond federal jurisdiction is really not a problem that increased enforcement and loophole closing can't solve. If they want to move to a country with less government than the United States (like, say, Somalia), they are always free to do so.
Reply to this commentLinkReport AbuseOr move to a country with lower corporate tax rates.. like most of Western Civilization?
I see what you tried to do there though. Tossing "less government" and "Somolia" into your argument to make it sound like what I was suggesting was filled with death and lawlessness. Except that's nonsense. It's a straw man way of trying to make your point sound more legit and make mine sound less so.
As for moving beyond federal jurisdiction, greater enforcement doesn't help if a company relocates to another country.
And I'm all for closing loopholes. Only let's close every single one of them and end subsidies to any industry. Unless we do something across the board without favor to any sub-group or indsutry politics and vote-seeking will continue to get in the way.
Reply to this commentLinkReport AbuseActually, when rich people renounce their citizenship, they prefer places like Belize or St. Kitts (both lovely and quite safe Caribean countries).
And, btw, Democrats have a far less sanguine attitude about it than you seem to. Every decade or so we hear them squealing in frustration as that tax money slips from their grip. So I'm glad you oppose any policy aimed at preventing them from sheltering their wealth by leaving the country.
Reply to this commentLinkReport AbuseAs Mario put it:
"If you don’t like the constitutional amendment proposed by 47 Republican senators and all the conservatives in the House of Representatives, then let’s please move right along to the consideration of an alternative."
What is your alternative?
Reply to this commentLinkReport AbuseSimple. No Constitutional amendment at all. Veto any Bush tax cut bill extension that extends the tax cuts for the rich. Since Republicans won't just pass the tax cuts for the middle class, they will all expire, and the government will get 4 trillion in new revenue.
Reply to this commentLinkReport AbuseThat $4T in new taxes assumes one is stupid enough to believe that the economy does not change when tax changes occur.
To date, only liberals are routinely that stupid.
In reality, it would raise only a few hundred billion, at absolute best.
Reply to this commentLinkReport AbuseA few hundred billion here, a few hundred billion there starts to add up, Mark. Your economic expertise continues to amaze and inspire.
Reply to this commentLinkReport AbuseExcept that we can't cut any of the sacred cows (and lets face it, everything is a sacred cow) and we can't reform entitlements because some high ranking Democrat will run out press conferences and commercials about Grandma not getting her check or not being allowed to go to the doctor. We can close some loopholes and some subsidies, but only the ones that make for good demagoguery. We certainly can't get rid of the "good" subsidies or close loopholes that help the "protected" groups.
Even a few hundred billion, which is a arguable number, is irrelevant if we don't go after the larger drivers of debt.
Reply to this commentLinkReport AbuseThat's what I figured. Thanks for playing.
Reply to this commentLinkReport AbuseThis doesn't make any sense.
None of the deficit drivers are even close to beyond the enumerated powers of Congress. In fact, it is terribly difficult for Congress to step outside of those as long as it is simply spending money. It's been that way since before the we had a country, it was that way with Parliament (in fact, nearly all of Parliament's original authority lay in taxes and spending).
Pretty much by design, Congress can't violate the Constitution by spending money. Nor does Congress get that money from the states: only the Confederation Congress did and that was one reason it was abolished and replaced by the Constitution. Conditional Federal funds are not even possibly unconstitutional, so long as they do not force the states to violate a provision incorporated against them. Again, it is Congress spending money, which it may do largely as it pleases.
The reason we're having this debt ceiling crisis is because the Republican Party is intellectually dead now that the Democrats have largely embraced free marketeering and so only taxes remain as an element from the old religion of 1979.
Reply to this commentLinkReport AbuseWell, that's an interesting idea, and one that's popular with liberal statists, for obvious reasons. But it's wrong.
Yes, the Constitution gives Congress the power to spend money, but, as originally intended and understood, only for certain enumerated functions. The mere fact of spending money on something does not convert it from an unconstitutional activity into a constitutional one, any more than the fact of spending money converts political speech from from a First Amendment right into something the government can infringe. Very little thought is required to verify this. Indeed, liberals figure it out instantly the moment a federal dollar might go to an overtly religious organization.
So the real dispute is with the very concept of enumerated powers. Conservatives, who agree with the Founding Fathers, believe the Federal government should do only a few things--mostly protect the states from external threats and abusive behavior towards one another. Liberals believe it can do anything they want it to do (often rationalizing that the "general welfare" clause means exactly that).
That's the battle line. Conservatives want to make room for people in different states to live according to different rules, and let people vote with their feet. Liberals want everyone to have to bow to their tastes. It's ironic that liberals are the one accusing conservatives of totalitarianism.
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