A Limitation On Federal Spending, to 20% of GDP

The federal government should be limited to 20% of the national economy every year.

From the Wall Street Journal, “Time for a Spending Cap With Teeth”   by Congressmen Jeb Hensarling and Mike Pence

“Fiscal storm clouds are upon us. In five years, federal spending has skyrocketed to 24.7% from 19.9% of our economy. That’s the highest level since World War II. As the Baby Boom generation retires and the cost of health care continues to escalate, entitlement programs will cause federal spending to rise to 40% of our economy, double its post-World War II average.

“U.S. fiscal policy is on an unsustainable path to an extent that cannot be solved by minor tinkering,” Congressional Budget Office Director Doug Elmendorf said recently . . . . .

That is why we are proposing a Spending Limit Amendment to the Constitution. This amendment would limit spending to one-fifth of the economy (our historical spending average since World War II). The limit could only be waived by a declaration of war or by a two-thirds congressional vote.”

 

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