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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One of my favorite features of the Newseum in Washington, DC is the daily display of newspaper front pages from around the world. Today, Canada’s National Post was a standout with Alex Spillius’ coverage of a clash between Presidents Obama and Sarkozy.

obama sarkozy pdf –

Obama: “We must never stop until we see the day when nuclear arms have been banished from the face of the earth.”