Should the Constitution be Amended to Address the Federal Deficit?
Should the Constitution be Amended to Address the Federal Deficit?
Good Morning Chairman Franks, Ranking Member Nadler, and members of the subcommittee. Thank you for inviting me here this morning to discuss whether the U.S. Constitution should be amended to address the nation’s fiscal problems.
I am an associate professor of political science at the University of Rochester and a senior scholar at the Mercatus Center at George Mason University.1 My research focuses on legislative politics and fiscal policy. I have written papers and a book on the subject of budget rules, and I have been following the debate over our nation’s future fiscal course with great interest.2 In my testimony, I will show why attempts to create long-term fiscal reform, stabilize the debt, and reduce the deficit are likely to fail in the absence of Constitutional budget rules.
The United States faces severe fiscal challenges that can no longer be ignored. Our current $14 trillion national debt is just the tip of the iceberg. Entitlement spending threatens to bankrupt the nation. The unfunded liabilities from Social Security and Medicare are three to seven times the size of our current debt, depending on how one calculates these figures.3
Any solution to this crisis must accomplish three things: First, Social Security and Medicare expenses have to be stabilized and future promises have to be limited. Second, discretionary spending has to be pared down. Third, future politicians must be prevented from undoing any reforms that are implemented. The focus of my testimony today will be the third of these requirements.
The recent bipartisan attention to the challenges we face is heartening. The dangers of our debt and deficit levels are no longer the province of commissions whose reports gather dust. Instead, we have elected officials taking a stand and proposing bold changes to the status quo. The President’s National Commission on Fiscal Responsibility and Reform proposed a serious plan, and legislators from both parties endorsed it. House Budget Committee Chairman Paul Ryan proposed an ambitious plan to control federal spending, and President Barack Obama responded to Chairman Ryan’s plan with one of his own. Voters are also paying attention. In a poll conducted by Pew Research Center and The Washington Post in April 2011, an astonishing 95% of respondents agreed that the federal budget deficit was a problem, and 81% agreed that action was needed now.4
This, in short, is a rare opportunity for meaningful long-term change. I believe that a Constitutional amendment can help us avoid making this a wasted opportunity. In my testimony, I will fir