“I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government; I mean an additional article taking from the Federal Government the power of borrowing.”Thomas Jefferson
What is the Balanced Budget Amendment?
Simply put, the BBA is an amendment to the US Constitution that would prohibit the federal government from spending more than it brings in. In other words, deficit spending would no longer be allowed.
Why does it matter?
The U.S. debt to GDP ratio has skyrocketed to an unsustainable 127 percent, the highest it has been since World War II.
A Balanced Budget Amendment would achieve several goals when applied to governmental speeding.
First, it would promote more fiscal discipline when approaching budgetary natters.
Furthermore, it would prevent further accumulation of national debt which currently stands at over 27 trillion dollars.
Additionally, a proposed amendment could have provisions in place in cases of a national emergency that would temporarily lift any spending restrictions and avoid further catastrophe.
Has it been done before?
Yes, many countries such as Poland, Switzerland, and Slovenia have adopted balanced budget measures with success.
Surprisingly, most US states have some form of balanced budget requirement.
What is the process for enacting a BBA?
Under Article V of the U.S. Constitution, two-thirds of the states can approve resolutions to apply for a convention. There, delegates will debate, draft and propose an amendment which would then be sent back to the states where three-fourths must vote to ratify the language for it to be added to our Constitution.