Concordia High School, Concordia, Kansas

1997-1998 Harry Singer Foundation National Essay Contest

The Budget Process and the National Debt

Concordia High School, Concordia, Kansas

Teacher : Tomothy Berger

1st Larry Florea 1st Jonathan Haritatos2nd Michelle Larsen 3rd David Fakler

"After reading various editorials and opinions, the average citizen hardly knows what to believe about the national debt. Some folks contend we don't have a debt, some think it is good to have some debt, and others predict impending doom unless the budget is balanced and the debt paid off soon."
Larry Florea, Concordia High School, Concordia, Kansas

"The oldest data available shows the National Debt in 1870. At that time, it was 2.4 billion dollars. By 1910, it had shrunk to just 1.1 billion dollars and after World War I, the debt grew to 24 billion dollars!"
Stephanie Walker, Concordia High School, Concordia, Kansas

"As a teenager getting ready to graduate high school, the United States budget process and National Debt seems more important than ever. Through…research, the problems of the national debt and budget seem to be more and more clear."
Jared Reed, Concordia High School, Concordia, Kansas

"The National Debt is a complicated thing to understand and something I knew nothing about. Before doing research on the subject, I thought that it was just a whole lot of money that the government borrowed and thus owed itself. The only thing that I did know is that the United States Government has compiled such a huge debt that it will probably never be paid off. There are many things that are involved with what makes up the National Debt, how the government deals with it, and how people perceive it. "
Justin Istas, Concordia High School, Concordia, Kansas

"First, let's understand national deficit and debt. Each year that the government spends more than revenues collected for that year, it causes a deficit. This deficit totaled with the previous deficits is called the debt, or the total amount of money the U.S. Government owes. The government must pay interest on the money it has borrowed to make up the deficits, thus adding to the debt if it can't be paid."
Larry Florea, Concordia High School, Concordia, Kansas

"The U.S. Treasury in its National Debt Debate on February 21, 1998 stated, 'The National debt = Debt held by the government + debt held by the public.'"
David Fakler, Concordia High School, Concordia, Kansas

"The first step in understanding the federal budget is to know exactly what it is. It is a plan for how the Government spends our money. It is also how the Government pays for its activities and a plan for borrowing."
Jacob Letourneau, Concordia High School, Concordia, Kansas

"Defined, the National Debt of the United States is the total of all the obligations of the Treasury to pay money to the federal government's creditors. It consists of bonds, notes and bills issued to the creditors when they lend money to the government."
Jenny Horkman, Concordia High School, Concordia, Kansas

"The national debt is the money owed by [the federal government.] It is usually in the form of bonds that are issued to finance budget deficits."
Kayli Chivers, Luck High School, Luck, Wisconsin

"What exactly is the difference between the national deficit and the national debt? The national debt is the total amount of money owed by the government; the federal budget deficit is the yearly amount by which spending exceeds revenue. Add up all the deficits … and that is the current national debt…."
Karen Oefflers, Luck High School, Luck, Wisconsin

"The Budget is one way that we limit the debt from becoming uncontrollable. The Federal Budget is a plan for how the Government spends its citizens' money, how it pays for its own activities, and how the Government runs a deficit. To finance the deficits, the Government has to borrow money, which adds up to the National Debt."
Jenny Horkman, Concordia High School, Concordia, Kansas

"Thomas Jefferson said, "My greatest regret in the drafting of the Constitution was not requiring a balanced budget." Stacie Nelson, Concordia High School, Concordia, Kansas

"Keeping a balanced budget for yourself is tough enough. Think of how difficult it is to keep a balanced budget for the whole population of the United States. Spending money is easy; saving the money is where we run into problems."
Stacie Haden, Concordia High School, Concordia, Kansas

"The United States creates a new budget every year. The budget allows a set amount of money to be used for specific purposes."
Kristina Brichalli, Concordia High School, Concordia, Kansas

"According to the United States' National Debt Clock, the National Debt was at a height of $5,496,078,662.29 on December 16, 1997, while on March 11, 1998 it reached a new total of $5,524,170,246,052.48. In just three short months, the National Debt increased $28,092,161,390.19. These may seem like some large numbers, they [explain] why the National Debt has become such a large problem in the United States. Each American citizen's estimated share of the National Debt is $20,515.23, more than some…individuals earn in one year.

Right now, the National Debt averages somewhere around $5,225,000,000,000.00. For many Americans, it is hard to imagine how much money this actually is. One source says that if one were to line up the dollar bills of the National Debt end-to-end, they would wrap around the world seven times. If one were to average a driving distance of 500 miles a day, it would take 2,768 years to complete the distance compared with the linear distance of the dollars of the National Debt."
Jenny Horkman, Concordia High School, Concordia, Kansas

"The National Debt of the United States has a significant impact on our nation's economy. American citizens have watched the debt continue to be a problem and many demand change to reduce our debt. They suggest that the government should plan better the way money is spent…A variety of opinions exist about ways to control the debt…[some] taxpayers ask themselves if cutting back on spending and trying to make the debt smaller is worth the sacrifice of programs government money supports. If the debt is affecting our economy to the extent that we suffer from high unemployment, a large decrease in revenues, high spending, and government borrowing is adding up, I feel the American people should risk the loss of some programs."
Jana Williams, Concordia High School, Concordia, Kansas

"The Budget Control Act essentially created the Congressional Budget Office and gave Congress most of the power of the President's Office of Management and Budget. This act forbade impoundment, replacing it with recision and deferral. The Budget Control Act inadvertently created power struggles within Congress itself. The Act originally required ceilings to be placed on spending, but these ceilings would have restricted Congress's ability to begin and increase the size of older programs without robbing the funding from other sources. To solve the problem, flexible spending targets were created instead of rigid ceilings. The Budget Control Act resulted in little success at curbing Congress's spending, and may even have helped to increase it. More recently, Congress has proposed a bill that would amend the Budget Control Act forbidding them from increasing any tax that applies to years before this bill was enacted."
Jonathan Haritatos, Concordia High School, Concordia, Kansas

"The Impoundment Control Act of 1974 required the President to tell Congress what he planned on doing with the money he would let Congress spend on what they planned. This may have been a good thought, but the President can use blackmail to get his way. If Congress does not let him spend money how he wants, he will not approve their programs and plans."
Barbara Larsen, Concordia High School, Concordia, Kansas

"Each year, Congress must pass and the President must sign thirteen appropriation bills that include all of the discretionary spending. The President and Congress do not have to enact new laws governing entitlements or taxes."
Cressie Simoneau, Concordia High School, Concordia, Kansas

"The last area of discussion [of] the federal budget and National Debt is that of the Budget Control Act of 1974. This is an act that was wildly misnamed as far as the content of the act is concerned…This act was actually a blow delivered in favor of Congress that helped to shift power in the government. Congress actually used this act to shift the balance [of] power [to] itself…Less than a month after the then-President, Richard Nixon, signed the Budget Control Act, he resigned. At the time of his resignation, Nixon had caused the Presidency to become weaker than it had been in [the] forty years since Franklin D. Roosevelt had been inaugurated."
Richard Condray, Concordia High School, Concordia, Kansas

"An ordinary consumer approaches a supermarket checkout counter pushing a shopping cart. The shopper slowly unloads such things as National Defense, Social Security, Medicare, and funding for education onto the counter. Like most shoppers, this one purchases these items with a credit card. This shopper is the Government of the United States of America, and its credit card contains many unpaid debits. The only problem is the government cannot pay the yearly bill. The debt to the creditors increases as they add on more and more interest and the government continues to use the credit card… Sooner or later, the National Debt will catch up with the nation creating tremendous problems. Despite any mild consequences, the United States needs to cut programs like Social Security or create laws and amendments that gives the government a little more control over finances. If nothing happens to fix this problem, another country or large business will cut up the nation's credit card, leaving the nation in ruin."
Joshua Collette, Concordia High School, Concordia, Kansas

"Many people wonder what causes the members of Congress to continue to spend more on federal expenditures than is brought in by federal revenue. One of the causes of this is that at least two-thirds of our federal expenditures are on social spending programs. Some examples of these programs are Medicare, Medicaid, school lunches, farm and business handouts, job training, education, and Social Security. These programs are helpful to many people, but they do not always go to those who need it the most and the Constitution doesn't even give Congress the authority to develop these programs. James Madison, the father of our Constitution said, "I cannot undertake to lay my finger on that article in the Constitution which grants a right to Congress of expending, on the object of benevolence, the money of their constituents." This may seem cruel and harsh, but these programs are exactly what are putting the U.S. Government deeper and deeper into debt. With all of the money owed to these groups added into the National Debt, the total debt is over $24 trillion. Not all cuts to these programs would seem fair. They would be painful to many people, but no more painful than it is for someone who is trying to dig themselves out of debt."
Michelle Larsen, Concordia High School, Concordia, Kansas

"Some spending the government cannot cut, like military hardware. They buy supplies with a contract. The government must fulfill their agreement. Therefore, they cannot cut this spending."
Barbara Larsen, Concordia High School, Concordia, Kansas

"The National Debt is not an easy thing to control, and definitely not an easy thing to understand. Many people wonder where all this money comes from, but even more wonder where it goes…"
Garrett Miller, Concordia High School, Concordia, Kansas

"The United States spends billions on entitlement programs, insurance programs, and farm payments. The amount spent on education, technology, housing, transportation, and foreign [aid] has shrunk. Each interest group is crying for more money, but it may not always be available."
David Fakler, Concordia High School, Concordia, Kansas

"The big question is how to control the National Debt. The Republicans want to cut social programs like Social Security, Medicaid, and Medicare. Democrats target the $254 billion dollar defense program for budget cuts."
Joshua Collette, Concordia High School, Concordia, Kansas

"Despite is name, mandatory spending is not fixed in stone. The President and Congress can change the laws that govern entitlements or taxes, but they must take explicit action to do so."
Cressie Simoneau, Concordia High School, Concordia, Kansas

"Social Security and Medicare account for 35% of all government spending, and interest on the National Debt alone is up to $365+ billion each year."
Jenny Horkman, Concordia High School, Concordia, Kansas

"The government makes us help by paying higher taxes and by putting more restrictions on our economic freedoms (Famofeagles, Phoenix 1,1). In 1948, a normal family of four paid 1 to 2% of their wages to help the government. Times have changed though, and the normal family now pays 24% of their wages to the government (Famofeagles 1). Interest on the debt has been a big reason why we have had higher taxes."
Justin Istas, Concordia High School, Concordia, Kansas

"The government may have to raise taxes, which is not a popular decision. Higher tariffs on oil or imports may be possible, but foreign countries may not want to market our goods. Republican Senator Phil Gramm said, "The average American household spends more on taxes than on healthcare, housing and nutrition combined." (U.S. Gov.) Congress is trying to relieve some of the pressure by promising not to raise taxes and trying to balance the budget…We can not always raise taxes to meet our demands. Saying "No" may not be popular, but it may occasionally be wise."
David Fakler, Concordia High School, Concordia, Kansas

"One other way to decrease the debt might be to raise taxes. One side of this might be that the National Debt is not as large as it is because Americans do not pay enough taxes, but because the government spends too much money. Another side is that Americans want to use all of the services that the government provides but they don't want to pay for them. Some experts say that Americans want a "free ride." Paying more in taxes would decrease the debt if it were used for the debt and not…for foolish things. In 1948 a family of four paid between one and two percent of their wages in Federal taxes and Social Security. Today a family of four pays more than 24% of their income into these taxes (Reduction, 1). So while the amount of taxes Americans pay have been increasing, so has the debt. It seems to be going in the wrong direction."
Lisa Saint, Concordia High School, Concordia, Kansas

"It is the duty of a citizen to pay their taxes. Taxes must be paid not just to control the debt, but for economic and regulating purposes. I would say that tax payment is the number one responsibility of an American citizen. Producers in the United States also have the responsibility to avoid surpluses in order to maintain an adequate demand. Consistent supply and demand is an important key to control prices and the spending money of citizens. American citizens have the responsibility of trying to eliminate unemployment. Our economy would benefit greatly if we didn't have to support as many unemployed and if more money was being earned. More jobs mean more money and more income in the hands of consumers."
Jana Williams, Concordia High School, Concordia, Kansas

"Not only is the government making the taxpayers pay on the debt, they also committed them to non-funded liabilities totaling $17 trillion (Geocities 1). The government cannot take care of this amount on their own so they ask the citizens of the United States to chip in and do their part. We citizens have to chip in, but many people do not even know what the money is used for, and quite a bit of it probably does not benefit them in any way."
Justin Istas, Concordia High School, Concordia, Kansas

"Social Security, which accounts for 23% of federal spending, was created as a way to provide a pension for supporting retired people who were too elderly or sick to work for a living. The retirement age was set at 65, although at the time, few people lived to be 65 or older. In other words, the government committed itself to fund something that they never expected anyone to use…However, as technology and medical breakthroughs improved so did the average life expectancy of Americans. Today, most Americans live [to be] much older than 65 and a huge population of aging Baby Boomers will be eligible for Social Security in the next 10 years. This creates a huge crisis."
Jonathan Haritatos, Concordia High School, Concordia, Kansas

"Social Security is an off budget entitlement program and one of the largest social programs the government sponsors. [It] accounts for over one-fifth of annual spending. The government uses the Consumer Price Index and the annual cost of living adjustments to determine the amount every retired worker and disabled citizen receives. They do this by raising…the payments to compensate for a change in the cost of living. However, the entire program is in need of reform before it destroys itself and drives the country further into debt. By the time today's college graduates retire, Social Security will not have sufficient funds to continue to make payments. Sometime between 2003 and 2015, the number of workers will decrease to the point the taxes deducted from their paychecks will not be able to support the large number of retirees…The problem of poor money management falls on the shoulders of the government. It is true that they currently have a growing surplus of…in the Social Security fund, but the surplus is simply a promissory note. In order to decrease the deficit, the government borrows the surplus instead of investing it; therefore, it becomes part of the national debt. President Clinton and Congress are trying to eliminate the problem. One reform is the means-testing reform, which would determine an individual's benefits according to his or her financial resources."
Joshua Collette, Concordia High School, Concordia, Kansas

"Right now, more people pay into Social Security than receive Social Security payments. By the year 2015, [this] situation will reverse (Concord Coalition, par 3). [This] means [that] if the United States does not figure out something soon, we will go into a deep dark hole. Medicare is doubling in cost every ten years."
Bryson Benne, Concordia High School, Concordia, Kansas

"If the Social Security fund is not replenished soon, when the "baby boomers" retire, American will go into economic chaos."
Lisa Saint, Concordia High School, Concordia, Kansas

"The federal pension system consists of payments made to retired civil and military workers. The problem arises in the system used to adjust the payments issued to the pensioners. As it stands right now, the cost-of-living adjustments, or COLAs, are far too excessive. To eliminate yearly debates over how much money [should be used] to increase the pensions, they were placed on a plan that would automatically increase them by the same percentage as the official inflation indicator, the Consumer Price Index, or CPI. However, in creating this plan, Congress never realized that three-fourths of retired federal employees collected more than one pension (more than one COLA), making the COLAs far too excessive. As time goes on and the indexed pensions are compounded repeatedly, pensioners are receiving undeserved amounts of money. One possible solution would be to grant only one COLA equal to the maximum Social Security payment. This cap on COLAs could reduce the pension payments by 50% and bring equality to the system. Fortunately, Congress has introduced the Public Pension Parity Act of 1997, an act which promises to do just this."
Jonathan Haritatos, Concordia High School, Concordia, Kansas

"If the people use the money to help themselves get back on their feet, it is okay. If they are just on welfare because they are lazy and they do not want to work, that is where it becomes wrong."
Stacie Haden, Concordia High School, Concordia, Kansas

"It is something we cannot just ignore or be ignorant about because it will not only affect us, but it will affect our children and grandchildren."
Jacob Letourneau, Concordia High School, Concordia, Kansas

"Also, by increasing our debt, we are borrowing from future generations. The Congressional Budget Office projects those children born today may face tax rates as high as 82% if we continue to spend at today's rate. The University of California at Berkeley calculated that a man who is 70years old in 1990 would have received $46,000 in benefits from the government $226,000 over his lifetime."
Jill Cibolski, Concordia High School, Concordia, Kansas

"The United States of America is a country like no other. It is a place where its citizens enjoy an unmatched level of safety, wealth, and standard of living. However, these luxuries that our government helps provide for us come at a price. Americans have come to expect comforts like these, for which citizens and the government must somehow pay. That is where the Unites States' budget and national debt come in. However, what was created as a safety net has exploded into a great burden. Budgeting programs like the Balanced Budget Amendment and the Budget Control Act have tried to reduce [our] national debt…With the staggering size and growth of the national debt, it is no wonder that a new emphasis has been placed on reducing it."
Jonathan Haritatos, Concordia High School, Concordia, Kansas

"The cause of the National Debt is easiest to explain as that the Government is spending more money than what income it is receiving. The difference between these two numbers makes up the country's National Debt. Many different ways have been thought up for controlling the debt, but the actual workings of these ideas are more complex than what it seems."
Jared Reed, Concordia High School, Concordia, Kansas

"The National Debt is the total amount of money that the U.S. Government owes. Every year the government spends more than it collects from taxes, fines, fees, customs duties, [and] property sales. This runs up a deficit. Each year's deficit adds to the total debt. Last year the federal deficit totaled nearly $160 billion. In addition to the yearly deficit, the government must pay interest on the money it has borrowed. For example, to spend that extra $160 billion last year, the government had to borrow $160 billion (Informed Resources, par 1). The government does most of its borrowing in the form of Treasury Bills and Savings Bonds. Each year the government must pay interest on these outstanding bonds, further adding to the National Debt. Interest payments alone consume 23% of the yearly Federal Budget.

Before people can understand the real problem of the National Debt, they have to know the difference between the debt and the deficit. The debt and the deficit are two totally different things but people always seem to get them mixed up. The deficit is the actual amount of money borrowed each year by the federal government. The debt is the accumulated "real" deficits from year to year. The debt was started hundreds of years ago when our government first started borrowing money. A great number of people blame our country's debt on the 1980's, but if they look further, they can see it started prior to that time.

Prior to the Budget Enforcement Act of 1974, federal spending was a relatively decentralized and disorganized process. The process was one of constant conflict between congressional authorization, appropriations and tax committees (Caton, par 2). We know that per capita debt started to rise in the mid-1960's and, thereafter, the increase accelerated. In an eight-year period between 1981 and 1988, about 1.7 trillion, or 32% of the U.S. current debt, was accumulated…If actions are not taken soon to curb deficit spending, budget experts predict that by 2003, the National debt could top seven trillion dollars."
Bryson Benne, Concordia High School, Concordia, Kansas

"Many persons do not know what the National Debt is. Some do not know that it is a rising problem in American society today. The experts that are informed about the National Debt need to tell others about it."
Stephen Smith, Concordia High School, Concordia, Kansas

"When the money from the U.S. budget is spent and expenses remain, the U.S. Government must borrow money. The money that the government borrows then becomes part of the national debt."
Kristina Brichalli, Concordia High School, Concordia, Kansas

"The National Debt is a major problem for the U.S. and many people do not realize the importance of this subject. It threatens the very stability and freedom people have come to believe is their birthright."
Stacie Nelson, Concordia High School, Concordia, Kansas

"Experts feel that no nation can continue amassing huge debts. If foreign financial institutions would call their United States loans, the effects could be extreme."
Jana Williams, Concordia High School, Concordia, Kansas

"Approximately half of all individual income taxes are required to pay the interest on the Federal debt." The Federal debt is a heavy drag on the economy."
David Fakler, Concordia High School, Concordia, Kansas

"Much of the federal budget is used to pay off the interest accumulated from the money the government owes. The money that the government owes is "borrowed" from the American public. The government obtains this money from the selling of savings bonds and through the Federal Reserve. Over the past nine years (four with a Republican President and five with a Democrat), the interest alone on the National Debt has totaled $2,756,000,000,000, nearly $3 trillion. The amount of money that the Federal Government spends to pay interest on the national debt is nearly astronomical. In 1996, the U.S. Government paid $344 billion to pay interest on the national debt. The government spent nearly $357 billion in 1997 to pay off interest on the National Debt. The National Debt, itself, is well over the high figure of $5.5 trillion and is growing as this is being read."
Richard Condray, Concordia High School, Concordia, Kansas

"In 1997, the interest on the debt alone was $356 billion. That year, it took all the individual taxpayers west of the Mississippi River, or 58 million people, just to pay the interest on the debt. The rising interest rates have caused citizens to pay more for car loans, home mortgages, and other personal debts. Businesses also have to pay higher costs to borrow money and then must charge more for the goods that they sell…The government is currently not paying anything on the still increasing debt, so this is causing the interest to be more and more every year. The government must pay the interest each year, and these payments alone use up 23% of the yearly federal budget. These interest payments that bought nothing could have paid [for] the cost of our defense department for 11-1/2 years."
Justin Istas, Concordia High School, Concordia, Kansas

"The money that the U.S. pays each year for interest on the National Debt is money that could be used to improve our society…[the] yearly interest could be used to improve our society by training one million displaced workers; putting more than 250 thousand police officers on the streets; funding the operations of the FBI, State Department and Environmental Protection Agency; funding highway construction, safety, mass transit, and railroad projects for one year; educating half a million students for two semesters at a public college; and, building 200 thousand homes for disaster victims and the homeless. Those are only a few of the benefits that we are now living without because of the national Debt."
Kristin Brichalli, Concordia High School, Concordia, Kansas

"Each year, the government loses more and more money on interest to the National Debt."
Jill Cibolski, Concordia High School, Concordia, Kansas

"The federal lawmakers are caught between the contradictory demands of the voters who want lower taxes but continued government spending. If Congress lowers taxes, they cannot meet the financial needs of the nation but if they raise taxes to meet the needs, they face angry voters."
Kristina Brichalli, Concordia High School, Concordia, Kansas

"Even though cash-basis accounting allows the most control, it also encourages deficit spending by underestimating the actual deficit. This makes it almost impossible to plan intelligently under this system because things may look okay but may, in fact, be a problem."
Garrett Miller, Concordia High School, Concordia, Kansas

"Cash-basis [accounting] can be best interpreted as reporting an expense when it is paid, and recording income when it is received."
Jared Reed, Concordia High School, Concordia, Kansas

"By using the accrual-basis method [of accounting] rather than the cash-basis method, it is possible to set goals and due dates on payments. This would possibly allow for a more accurate set of accounting books. When using the cash-basis method, income and expense are only recorded when they have occurred. This method can distort income and expenses if inventory is kept and buying on or extending credit. The federal government uses this method of accounting although it prohibits publicly traded corporations from doing so.

In 1975, the federal government predicated bailout loans to New York City for switching to accrual-basis method of accounting. The 1988 reconciliation bill barred large farms from using the cash-basis method. The accrual basis method records income when a sale occurs whether it is the delivery of a product or the rendering of a service, regardless of when payment occurs. An expense is recorded when goods or services are received even though payment may not occur until later. Income is recorded on the books when it is truly earned and expenses when they are incurred. Income earned in one period is accurately matched against the expenses that correspond to that period.

Even though the cash-basis method is easier, the accrual-basis method is better because it shows gains and losses where a cash-basis method would not. It gives a clearer picture of the financial status by keeping track of all information."
Jill Cibolski, Concordia High School, Concordia, Kansas

"In the early 1980's, President Reagan and Congress agreed on a large tax cut, but could not agree on spending cuts. The President wanted to cut domestic spending more than Congress, while Congress sought fewer defense funds than the President wanted. By 1985, both sides were ready for drastic measures. That year, they enacted the Balanced Budget and Emergence Deficit Control Act, better known as [the] Gramm-Rudman-Hollings [Act]. It set annual deficit targets for five years declining to a balanced budget in 1991. The President and Congress never achieved those revised targets that year."
Stephanie Walker, Concordia High School, Concordia, Kansas

"Congress and the President spend more money that [we] do not have and then raise the debt ceiling. A Balanced Budget Amendment would keep the debt ceiling from rising again…Many politicians are skeptical because they feel that it will not be effective. The Balanced Budget Amendment does not really cut much federal spending…One thing that makes the Balanced Budget Amendment ineffective is that the Democrats want to exclude Social Security from the cuts. If the Balanced Budget Amendment is going to work, it has to be universal and cut a little from all programs. Another reason the Balanced Budget Amendment might fail is because 'Congress is not a gentle place and a lot of things are what you and I would call rigged.' This amendment will be very painful and will take a lot of good budgeting. Future Congressmen will make loopholes in the amendment. There will be 'real spending and phony cuts!'"
Barbara Larsen, Concordia High School, Concordia, Kansas

"Supporters of a Balanced Budget Amendment say the President and Congress will not balance the budget unless forced to. The two feel that the only way to balance the budget is to cut programs, but then voters may become upset and bring in new people when the next election comes around."
Joshua Collette, Concordia High School, Concordia, Kansas

"Opponents feel that the amendment is not needed [and it] is likely to lead to major shifts in the balance of powers. [Suppose] the budget slipped out of balance during a year [and] Congress and the President could not agree on budget cuts or tax increases large enough to restore balance, and three-fifths of the Congress [fail to] agree to waive the balanced budget structure and raise the debt limit. In an event like this, the President or the courts could take the matter into their own hands. The court might order cuts themselves. They even could rule [that] the amendment gives the President unprecedented authority to cut programs unilaterally. Such authority goes far beyond line-item veto authority, which Congress can override and which applies only to recently enacted legislation…This amendment increases the likelihood that the fiscal policies adopted in the decades to come would favor the wealthy at the expense of the poor and average Americans. It would alter the congressional voting procedure. This amendment would require that legislation raising taxes be approved on a roll call vote by a majority of the full membership of both houses. Spending majority of those present and voting could be passed on a voice vote. The amendment would require more votes to curb special interest tax breaks than to cut programs such as Medicare and assistance for poor children. This raises the equity issues. Wealthy individuals and large corporations receive most of their government benefits through tax subsidies or tax expenditures. By contrast, most middle to poor income families receive their government benefits through programs."
Stacy Gering, Concordia High School, Concordia, Kansas

"Another means by which we can balance the budget is to pass a Constitutional Amendment. 'Only one thing will make fiscal responsibility and tough choices the norm instead of the exception, but it will be a rickety, dangerous bridge unless it is constructed with the steel of the balanced budget amendment' (Sen. Larry Craig). Founders of the Constitution and early Presidents agreed on the danger of an excessive public debt, but for about 150 years, balanced and surplus budgets were the rule. The government hasn't balanced the budget since 1969. The inability of Congress to match spending and income causes Americans to demand an amendment to the Constitution requiring Congress to balance the budget each fiscal year. Supporters say a balanced budget is needed…to avoid [burdening] future generations…with an overwhelming legacy of debt. Opponents say that balancing the budget is an important goal, but they argue that the Constitution should not be tampered with because the system is [already] in place for congress to create balanced budgets."
Bryson Benne, Concordia High School, Concordia, Kansas

"The disadvantages of the amendment are that the federal government could require the states to continue programs without federal funding; it would cut funds for the poor; it could trigger significant short-term unemployment and by cutting Medicare and Medicaid, it could led to a reduction in services at hospitals."
Linda Scott, Concordia High School, Concordia, Kansas

"An important feature of Section 1 is that it imposes upon Congress and the President to prevent total actual spending. This guards against the possibility that actual outlays might exceed statement outlays the next fiscal year. Congress would then be required to enact a bill expanding a specified tax base and increasing specified rates. Section Three says that in an event of a declaration of war, Congress has discretionary authority to operate outside of provisions of the amendment. Section Four has a purpose to exclude the proceeds of debt insurance from receipts. Treasury notes and bonds would not count as receipts, but as proceeds of selling debt. The amendment permits Congress to plan for a budgetary surplus. The last section, Section Five, stipulates when the amendment would take effect. It would take effect for the second fiscal year beginning after its ratification."
Jill Morrissette, Concordia High School, Concordia, Kansas

"It has particularly ambitious goals like eliminating some 300 domestic programs. Commerce, Education, and Energy would be three departments that would be mothballed, and foreign aid would gradually be reduced. Also, for the first time since 1980, Americans would receive tax relief, not a tax hike. But the truth is that the only [effective] way to cut spending is to cut entitlements."
Stacie Nelson, Concordia High School, Concordia, Kansas

"An amendment would…make education and children's programs extremely vulnerable. An amendment would also put a straight jacket on Congress and impose far greater restrictions on the average family."
Jacob Letourneau, Concordia High School, Concordia, Kansas

"I agree with [President] Bush's plan: rather than setting annual deficit targets, he limited discretionary spending while ensuring that any new entitlement programs or tax cuts did not make the deficit worse…I believe that additional target spending would improve Bush's plan and make it effective enough to work for the Unites States right now."
Jana Williams, Concordia High School, Concordia, Kansas

"Long-term economic benefits will flow from putting our fiscal house in order. Eliminating the deficit will help put our nation back on the path to lasting prosperity and a rising standard of living in the next century."
Jacob Letourneau, Concordia High School, Concordia, Kansas

"Recently, federal and state budget practice had been subject to comparison…[There are] six critical points…[First], many states [are] required to balance their operational budget, not their total budget. States maintain separate budgets for operating expenses and capital expense. Investments in roads, bridges and school construction are often not subject to budget balancing requirements. [Secondly], many states have established "rainy day" or reserve funds…[Thirdly], many states require that the governor submit a balanced budget or that legislature enacts a balanced budget but not that year-end balance actually be achieved. Two other points are the federal budget has a larger impact on the United States economy than state budgets do and many states allow governors to act unilaterally without legislative approval to cut spending in the middle of a fiscal year. The last point is the larger majority of states require the same number of votes to raise revenues as [they do to] cut programs."
Stacy Gering, Concordia High School, Concordia, Kansas

"As a teenager in a changing world, it scares me to think that the leaders of our country are only talking about these measures and not actually doing anything about it."
Jared Reed, Concordia High School, Concordia, Kansas

"The Senate says it will not pass any bill that balances the budget unless it also sets aside money to pay back the debt. One such bill is the American Debt Repayment Act. Starting in 1999, it will restrict the budgeting of outlays from exceeding revenue. Enough of the annual revenue will be set aside to pay off the debt by the year 2029."
Joshua Collette, Concordia High School, Concordia, Kansas

"Two senators, one for and one against the Constitutional Amendment for a Balanced Budget, were asked their reasons. Senator Larry Craig supported the Amendment. He said that the debt of $5.3 trillion is already depressing wages and living standards of the working families. He argues that a child born today will pay nearly $200,000 in additional taxes, not to pay down the debt but to pay interest on the debt. If we balance the budget by the year 2002 and keep it balanced, that will create 2.5 million new jobs and save a typical family $1,500 a year in interest costs on mortgages, etc. He closes by telling the dangers of the future welfare of the government without an amendment.

On the other side of the coin, Senator Paul Sarbones is against the amendment. He states that the balanced budget amendment threatens to turn economic downturns into recessions and recessions into depressions. He argues that [the] way to balance the budget is to make the budget decisions we are confronted with, not amend the Constitution. We have lowered the deficit down from 4.9 percent of gross domestic product to 1.4 percent. He closes by recapping his ideas and further pushing the 'no vote' for the amendment."
Jacob Letourneau, Concordia High School, Concordia, Kansas

"The United States of America is a democracy ruled by the people. Our Federal Government is responsible to the American people for the care and operation of our country. Americans have become accustomed to comforts and demand more from the Federal Government. Our national debt is increasing, and Congress is always searching for ways to balance the budget. As American citizens, we must come forth and say we do not need everything. We must finally realize that we may not be able to have everything we ask for."
David Fakler, Concordia High School, Concordia, Kansas

"The United States [Government's] comparison-shopping is another idea that should be closely considered. The U.S. has had a tendency to pay overly exaggerated prices for their governmental products and materials. In some cases, they have records showing that they have spent up to $500 for a calculator that only retails for $100 (Accounting Principles)."

There's not really anything that the average American working man or woman can do to help reduce the national debt. The only thing [they] can actually do, is write to their [Congressional representative]…and suggest that something be done. This may not be very effective, because the government officials have acknowledged the problem, and are trying to correct the problem.

It seems that the only other way…is to become a Congressman or Congresswoman and change the spending first-hand. Although the latter solution seems much less probable, the first solution seems to be ineffective because many people have already tried. There seems to be no easy solution or answer to this gigantic blemish on the credit record of the United States."
Richard Condray, Concordia High School, Concordia, Kansas

"I…feel that our government should concentrate on reducing federal spending on domestic social programs to help our debt problem. There are programs such as Medicare, non-defense discretionary spending, and food stamps that could be regulated more closely. These programs are costing the Unites States a lot and a cutback on money spent for them wouldn't hurt our economy. Medicare is costing us too much; the cost of Medicaid is shared between the states and the Federal government. I think Medicare should account for [a smaller] percentage of the Federal budget and expenses like Medicaid should be shared with the states. Non-defense discretionary spending has shrunk as a share and I believe it could be reduced even more. Food stamps and food aid…to other countries, I feel, is also costing too much money. As long as our government is spending more than it is taking in, we will suffer. Our nation's security and success should come first before we spend money to [assist] countries with food. Finally, all this could be accomplished by setting stiffer targets for spending. A President should [place] a tougher cap on total annual discretionary spending, which I feel would improve our debt crisis."
Jana Williams, Concordia High School, Concordia, Kansas

"Some people say just print more money, but that would make all situations worse because the value of the dollar would decrease. The only way to minimize the debt is to cut back on major expenses, which would cause the debt to stop increasing so drastically at once. Then they could cut back on taxes that people pay. When people spend less money on taxes, they have more money to spend other places. This revenue, in return, rises and the debt decreases."
Mark Nelson, Concordia High School, Concordia, Kansas

"As U.S. citizens, we can take a number of approaches to solve the National Debt dilemma. First, vote for members of Congress that share the same views about the debt as you. Choose leaders that will do what's best for the country and not just for their election. Next, understand how your vote affects society. For instance, if you vote for lower taxes, realize that public services will also be cut back. There will be fewer government projects, less environmental protection, sell-off of public lands and privatization of government services."
Kristina Brichalli, Concordia High School, Concordia, Kansas

"One way we can help the budget is to plan for more auctions for communications-spectrum licenses by the Federal Communications Commission, which will provide $20 billion in revenue by 2002. The Concord Coalition suggests that we reduce government spending and increase taxes for a short-term sacrifice."
Jacob Letourneau, Concordia High School, Concordia, Kansas

"Citizens need to stay off government aid if they are capable of working and are not in need of the aid they are receiving. Everyone wants it easy and that is America's biggest problem. It is easy to cheat and get benefits one does not really need."

"The United States is not going to be a very good place for the next generation if we do not do something about it now. It does not matter if balancing the budget requires an amendment or simply another act, just so long as something is done. It will be a long, hard struggle, but good things will come from balancing the budget."
Barbara Larsen, Concordia High School, Concordia, Kansas

Back