For a third consecutive Congress, Representative Bob Goodlatte is introducing a Balanced Budget Amendment. Republicans have long supported the idea of a balanced budget amendment though actually getting such an amendment into the Constitution is a necessarily long and difficult process.
It is also important for Republicans to realize that not just any balanced budget amendment will pass off as good policy. Unless the proper protections are put into place, a balanced budget amendment could quickly transform from a fiscal conservative’s dream into a tax payer’s nightmare.
If an amendment is passed and then the progressives who currently favor a large and bureaucratic government once again regain control of the purse strings, we may find ourselves in a situation where the big spenders merely print more money to meet the demands of the amendment. This would cause inflation to rise and consumers everywhere will suffer to a greater degree than they currently are. Even if one assumes that the progressives will risk a backlash and raise the tax rates, we will be faced with a situation in which America continues to lose its competative advantage in the world, and again, consumers will suffer.
Also, it is important that we not find ourselves overly restrained if federal spending becomes necessary for military emergencies. Certainly, having the ability to spend large amounts of money in a time of heightened warfare can sometimes prove necessary, and it would be important that any amendment take this into account.
With that being said, the idea of a balanced budget amendment is a good one. Making our government live within its means is not a bad thing. The Virginia General Assembly must grapple with the necessary wrangling of the budget in order to produce a balanced result and many in the Commonwealth support this proposition as it has helped to ensure our fiscal future. In addition, the specific plan put forward by Congressman Goodlatte addresses many of the concerns that were raised in the above paragraph. Specifically, Congressman Goodlatte’s plan would do the following according to his website:
(1) amend the Constitution to require that total spending for any fiscal year not exceed total receipts
(2) require that bills to raise revenues pass each House of Congress by a 3/5 majority
(3) establish an annual spending cap such that total federal spending could not exceed 1/5 of the economic output of the United States. The bill would also require a 3/5 majority vote for any increases in the debt limit.
While no plan is perfect, the plan put forward by Congressman Goodlatte represents an important discussion starter for the rest of the Congress as they begin to actually govern. However, it will be important that any final plan contain within itself the proper restraints to insure that unintended consequences are kept at a minimum.
