The agreement to force Congress to have an up or down vote on a Balanced Budget Amendment is the cornerstone of re-establishing America as the world leader in sound economic policy. For decades, America’s small government model was internationally respected as being supportive of higher levels of economic growth. But that image died after Republicans gained domination of the Presidency, Senate, and the House in 2002 and ramped up outlays in every direction – increasing spending by 90% and the national debt by 150% in just nine years.

This irresponsible action gave cover for politicians around the world to join in on the spending bash. But with the American public now favoring a Balanced Budget Amendment to the Constitution by 74% according to the most recent CNN poll; Congress and the President will be forced to either approve an Amendment, or suffer the over-whelming wrath of voters in the next election. Following America’s re-born economic leadership; President Sarkozy of France just proclaimed he will run for re-election on a platform in support of a French Balance Budget Amendment.

America has long been the envy of the world. With 5% of the earth’s population, America still controls 25% of the entire world’s GDP. Since 1871, the U.S. has grown its economy rather consistently at about 3.47% per year compounded, compared to less than 2% for other developed nations. One of the keys to that victory has been the U.S. remaining in the bottom 10% of tax burdens percentages of developed nations – with 25% tax burden as a percentage of GDP. But according to the International Monetary Fund (IMF) the explosion of deficit spending means either tax rates must rise to the French and German average of 38% or spending must be cut.

American businesses have been planning for the advent of higher corporate taxes by continuing to outsource production to lower tax platforms, such as Mexico with its 17.5% tax burden as a percentage of GDP. This explains why Mexico’s unemployment rate has fallen to 4.9 percent, while joblessness has risen to 9.4 in the U.S. Mexican Consul General Carlos González Gutiérrez responded to questions about why less Mexicans are now entering California illegally:

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Repealing Obamacare via Article V is a means of last resort, or rather a threat to the national bureaucratic government should those in Washington not jump on board.  In the meantime, states, those individual laboratories of liberty, are attempting a number of remedies.

States have filed lawsuits, but my legal background makes me wary of relying on the judicial branch to make the ultimate decisions on policy.  Marbury v. Madison established the Supreme Court’s role as the ultimate arbiter in conflicts involving the Constitution, but that does not guarantee that correct decisions will result.  So first we will examine the legislative solutions.

Many states across the country are either introducing laws or revising constitutions to protect Americans from the tyranny of Obamacare.  The progress of these Health Care Freedom Acts or Amendments are being tracked by various groups.  Most of this legislation is fairly simple to read and understand.  Basically, states are refusing to enforce or enact Obamacare, which is perfectly reasonable under the present legal understanding of federalism.  The national government cannot force states to enforce unfunded federal law.  A perfect example of this is the increasing decriminalization of marijuana in communities across America.  Local police are handing out tickets (much better for revenue than throwing people in jail). (more…)

There is much talk of repealing socialized medicine, though the rhetoric has waffled a bit since passage.  The problem is that even if we gain majorities in Congress we still need 60 votes in the Senate to avoid a filibuster, not to mention the 2/3 majorities we need in both houses to override a presidential veto.  Meet Article V of the Constitution:

The Congress, whenever two thirds of both Houses shall deem it necessary, shall propose Amendments to this Constitution, or, on the Application of the Legislatures of two thirds of the several States, SHALL call a convention for proposing Amendments, which, in either Case, shall be valid to all Intents and Purposes, as part of this Constitution, when ratified by the Legislatures of three fourths of the several States, or by Conventions in three fourths thereof, as one or the other Mode of Ratification may be proposed by the Congress; Provided that no Amendment which may be made prior to the Year One thousand eight hundred and eight shall in any Manner affect the first and fourth Clauses in the Ninth Section of the first Article; and that no State, without its Consent, shall be deprived of its equal Suffrage in the Senate. (emphasis added)

Dark thoughts are on American minds these days, despite the optimism in the American system.  It is not the first time, nor will it be the last.  Travel backwards to the Spring of 1786.  The Articles of Confederation were the “Supreme Law of the Land,” but one Charles Pinckney of South Carolina proposed a revision.  Congress represented the sole institution of our national government, and Congress was rather weak.  The states retained much of their sovereignty, and Congress, with the few powers it actually wielded, could only operate with unanimous consent.  Rebellion and credit issues abounded, not to mention the threat of foreign invasion, without effective centralized governance.  And so, the Constitutional Convention eventually convened in May 1787 to revise our system of government, and prevent disaster.

The Articles of Confederation were completely replaced by the Constitution when New Hampshire ratified it as the ninth state on June 21, 1788.  The United States of America under the Constitution came into existence without a bloody revolution or civil war.  And the Constitution provided a means to revision in Article V. (more…)