The Case for Constitutional Fiscal Reforms

Posted on Wednesday, November 20, 2024

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by Outside Contributor

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Among a host of problems, what is one of America’s primary troubles today and how do we resolve it? My guess. Our debt skyrocketing. Too many political promises kept that we never could afford and at a cost that will force us to borrow just to service the annual interest payment.

Indebtedness began soon after the American people approved the reformed and renamed Articles of Confederation, the U.S. Constitution. The problems were slow to rise but government continued to repair itself and function as the Framers intended. However, with the Progressive Era, problems grew in numbers and size.

In 1913 these events were key to hastening the problems:

• 16^th Amendment: adoption of income tax and governments legal access to citizens wallets.
• 17^th Amendment: adoption of direct election of senators with unintended consequences: the U.S. moving away from a republic and closer to pure democracy and the conversion of States into federal agencies.
• Federal Reserve: economic decisions were no longer made by consumers but by a few DC elites. It is not a bank nor a federal entity but has the power to control American taxes and the economy.

These three issues resulted in a reckless growth of government:

• Except for emergencies, the cost of government in our first 125 years averaged 3% of GDP.
• In 1912, Congress controlled 97% of spending budget.
• In 2023, Congress controls less than 30% of spending budget.
• In 2023 the U.S. government is 10 times larger than it was in 1912.
• Our 1979 annual debt was $870 Billion. Today it is nearing $34 Trillion~40 times larger in 44 years.
• Debt at $34T with unfunded promises exceeding $125T; 500% greater than the 2022 GDP
• 2023 OMB claims ~2.8 million non-military employees plus ~ ½ million more added this year.
• For political reasons, Congress continues to use the Continuing Resolution rather than the Appropriations method to fund America’s operations, threatening shutdowns and costing us more.
• The Government estimates that there are between 450 to 650 different departments and agencies.
• Dept interest is our fastest growing federal expense forsaking any citizen benefits.
• Government spending was 40% higher in 2022 than 2019.
• 2023 spending is approaching 20% higher than 2022 after the 1^st
• Government is running our of creditors. Due to world issues, there are fewer willing to loan to us.
• World-wide faith in our fiduciary duty is falling along with our credit rating.
• This expanding government is growing more and more out of the control of We the People.

No one is paying any attention to the dwindling solvency of Social Security or Medicare.

• By continuing to do nothing, there will be, automatically, a 20+% cut to benefits within 10 years.
• Medicare costs continue to rise along with corruption costing an additional 5%-10%
• Every major federal official and monetary agency has said the threat to lose both is real.

We Must ACT NOW!

• STOP SPENDING
• Stop Borrowing
• Create a debt commission
• Amend the Constitution to add spending restrictions that works for all Americans.

Cure the Disease

• Congress should form a debt commission to coordinate with a new State driven fiscal responsibility amendment, FRA, proposal.

How? With a little-known SOP process that has been used hundreds of times over centuries.

• Used when legislatures or congresses could not find a solution to a problem.
• The successful process was codified in Article V after 170 years of practice.

The States were given the authority in the second clause of Article V:

• “…or, on the application of the legislatures of two thirds of the several states, [Congress] shall call a convention for proposing amendments…” Congress’ has a ministerial task of setting the place and time.
• Congress proposes 50-100 amendments every year (>12,150 so far) and has succeeded 33 times of which the States have approved only 27 since 1788.
• The records show that the colonies & then states have successfully met, for many reasons, in convention 650 recorded times over 4 centuries to resolve problems: creating constitutions, amending them, river navigation, safety, war, price controls, defense, anti-trust, among others.

The States have applied with over 450 valid Article V applications to Congress.

• At least five times in the last century, States have met the two thirds threshold.
• Congress has no record of any of them and continues to ignore the States rights.

What is a ‘run away’ as claimed by a few mythical fiction writers?

• Did the Framers make a mistake? No.
• Was the convention process used to create a new government under the Constitution? Yes
• Were all the outcomes from the 650 recorded conventions successful? No.
• Did any of the 650 convention meetings misbehave? No.
• Where is the evidence that a ‘runaway’ will occur? No evidence exists.
• Shouldn’t we be directing our attention to the real runaway Congresses spending?
• Is opposition to a state’s convention due to their fear of lost revenue? Hey, maybe…

What is the SOP or standard operating procedure of a convention?

• States has one vote regardless of how many delegates attend.
• States decide on who and how many delegates to send.
• States legally commission their delegates
• States are free to write laws limiting delegates to their commissions with consequences.
• The recording secretary is usually a non-delegate.
• The calling or hosting state usually has temporary rules in place to start the convention.
• The convention elects its president and secretary
• The convention creates rules, committees, and a credentialing process.

Once the convention proposes something all the States can generally agree on and if they approve a fiscal responsibility amendment, it will result in a repurposed America. Even with unintended consequences, this event will prove the validity of Constitutional change when necessary.

This convention will have a more impactful effect on America than just proposing limits on Congress. With confidence that we the people and our States can meet in convention again, we have a lot of work yet to do. During the founding era, conventions formed, on average every 3 ½ years. Think term limits, repeal the 16^th and 17^th amendments, a Countermand, and many more possibilities.

To preclude an episode of America following in Venezuela’s footsteps, our states urgently need to open the FRA convention doors. Doing nothing risks our grandchildren reaching their death bed before retiring.

We’ve come together to resolve larger issues, problems our elected legislatures or Congresses could not. This time is no different. With God’s guidance, We the People and our States can fix this too.

Mike Kapic is a writer for Hunt for Liberty.

Reprinted with Permission from Hunt for Liberty – By Mike Kapic

The opinions expressed by columnists are their own and do not necessarily represent the views of AMAC or AMAC Action.