“If runaway spending and borrowing continues unchecked, this generation will be the first to mortgage away the future prosperity of its children and grandchildren.”

Over the last five years, federal spending increased from nearly 20 percent as a share of the economy to 24.7 percent as the government’s expenditures grew from $2.47 trillion to $3.52 trillion—a 42 percent increase. These are the highest levels of spending as a share of the economy since World War II. Such high levels of spending have seriously worsened federal budget deficits, which have grown from $318.3 billion in 2005 to $1.4 trillion in 2009. And with such borrowing, the national debt has ballooned, growing from $7.3 trillion to $11.9 trillion—a five-year increase equal to the nation’s entire accumulation of debt from the presidencies of George Washington to Bill Clinton.

These levels of spending and borrowing are economically unsustainable, but unfortunately, the fiscal situation is only getting worse. By 2036, three entitlement programs will consume all of federal revenue, and public debt will reach 200 percent of the total economy by 2038, according to CBO. This will invariably lead to higher taxes, a lower standard of living, and weakened national security for generations to come. If runaway spending and borrowing continues unchecked, this generation will be the first to mortgage away the future prosperity of its children and grandchildren.

The Solution

The Spending Limit Amendment (SLA) to the Constitution of the United States would ensure that federal spending cannot grow faster than a family’s ability to pay for it. The Amendment would limit spending to one-fifth of the economy—the historical average for spending since World War II. The limit could only be waived if a declaration of war was in effect or by a two-thirds vote of Congress.

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