The States Didn’t Start the Fire Sale—But They Can Put It Out.
March 18, 2014 | By Nick Dranias | email
The writing is on the wall for Washington’s unsustainable debt-fueled fiscal policy. Just last week, the Telegraph reported that central banks commenced a worldwide “fire sale” of $106 billion in U.S. Treasuries. And yet, there is no leadership from the beltway to fix the national debt. Instead, last month, the federal statutory debt limit was suspended yet again.
That’s why the states must douse the flames of fiscal irresponsibility in Washington by joining the Compact for a Balanced Budget. Fortunately, Georgia, Alaska and Arizona are already sliding down the fire pole. In fact, Georgia’s Senate will be debating and voting on the Compact on the floor this week. Alaska’s House has moved the Compact through their subcommittees and it’s poised for the full floor. The Arizona House already passed sister legislation, and the bill was assigned to the Government, Judiciary and Rules Committees in the Senate.
Any day now, Georgia, Alaska or Arizona could become the founding member state of the Compact for a Balanced Budget.
Far from a mere “letter to Congress,” the Compact would create an institutional commitment to fiscal responsibility. Once two states join, the Compact will form a commission among the founding and future member states. Rather than jawboning and grandstanding the federal government’s national debt addiction, the Compact Commission will have a goal and a deadline—to organize and bind together thirty-eight states to advance and ratify a powerful Balanced Budget Amendment in seven years or less.
In short, the Compact for a Balanced Budget will create a persistent platform dedicated to extinguishing the debt profligacy of the federal government.
With leadership from Georgia, Alaska and Arizona, power politics in Washington could change forever.