Speaker John Boehner told his Republican House Members that a U.S. Constitutional amendment is part of the considered plan to raise the current deficit ceiling. Officials in the Obama administration gave a July 22nd deadline for a U.S. Debt Deal to be passed for the bill to be passed and implemented by August 2nd to prevent the United States from defaulting. On July 22nd Senate Democrats voted against the Cup, Cap and Balance proposal.
Now as the deadline is past, it appears that Democratic and Republican lawmakers are still far away from reaching a deal by August 2nd. After President Obama interfered with the progress and struck down several proposals, Speaker Boehner reminded him that Congress makes the laws and the President signs them. With tensions high and Republicans considering an added constitutional amendment to the table, the debate will likely heat up.
28th Amendment Wiki
The United States Constitution already has 27 amendments to it, with the last being passed in 1992, preventing Congressional salary raises from taking effect until the next term. Proposed now is a Balanced Budget Amendment, which would make it the 28th amendment. Its central component is forcing the U.S. Congress to pass budgets that equal or fall under the revenue it brings in each year. While not a radical idea to a large number in the American public, as we all have to live within the income we earn, the U.S. government has rarely in its history spent less than it brings in in revenue, leading to an over $14 trillion deficit.
At debate now is what to do about the U.S. Debt Ceiling. The limit was reached once again in May and lawmakers have been attempting a bill for months to raise the limit, cut the deficit and prevent the nation from defaulting. Upon default, interest rates would rise, the dollar would devalue and markets would take a large hit.
The 28th amendment Balanced Budget would prevent the deficit from rising any higher and putting the dollar’s value at risk, allow the government to pay off its debts and interest payments, limit the size of government and provide a stable economic environment. Despite this, Democrats are against the proposed Balanced Budget Amendment.
Democrats believe the Balanced Budget Amendment would prevent the government from artificially creating demand through government spending in the times of recessions. However the recent 2008 financial crisis and recession were caused by government intervention and the billions in spending have not lifted the economy from its situation.