Issue Brief: Spending Limit Amendment

Blog Articles · Aug 15, 2010

Background: Washington's spending problem is threatening to put our nation's economy on life support. In the 1980's and 1990's, the federal government spent $21,000 per household, when adjusted for inflation. Today, they spend more than $30,000 per household, a figure that is predicted to rise to$36,000 in less than a decade.

Massive government spending is suffocating private investment, the lifeblood of our economy, and causing historic deficits. Our national debt is already among the worst in the world. Unless Congress acts swiftly to cut spending and return us to a more sustainable path, our triple-A bond rating could be in jeopardy, which would signal the decline of America as the world's leading economy.

Such spending threatens both our way of life and our security. As government spending rises to the levels of European countries, it builds pressure for massive tax increases on future Americans. Even then, massive domestic spending - particularly the entitlements of Social Security, Medicare and Medicaid - will still crowd out the funds needed to defend the country.

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