In 1995 the so-call 501 c 3 group who would say they are not a political activist group gathered 219 economists as a part of a letter they sent to the United States Senate, while also calling for the states to hold a Constitutional Convention to get a Balanced Budget Amendment proposed to the Constitution.
These 219 economists as so happened to come from schools the Koch Brothers founded or either have made donations to over the years, such as the Cato Institute.
As you know Republicans talk about a balanced budget amendment and how they have one in their states and the Federal government needs one as well. What don’t tell you is these states are unable to sustain themselves with out the help of the federal government. Of course when you don’t raise revenue, then you can’t afford the upkeep of a state and its citizens. Well today and for years ALEC has been pushing for a Balanced Budget Amendment, and in 1995 when a Balanced Budget Amendment was something ALEC dreamed of, ALEC called for the the states to rally together to call for a limited Constitutional Convention to propose a Balanced Budget Amendment to the United States Constitution.
This below is taken from ALECs letter written to the Senate which I have below.
Included in the list are such prominent economists as Dr. Richard Vedder of Ohio University, Dr. William Niskanen of the CATO Institute, and Dr. Gordon Tullock of the University of Arizona. The list was solicited by the American Legislative Exchange Council (ALEC) in response to news reports that many economists are opposed to the BBA. ALEC, the nation’s largest bipartisan membership organization of state legislators, instead believes economists recognize the harm in an annual spending deficit that has hit $200 billion and is growing. With support from roughly 3,000 member state legislators, ALEC has been at the forefront of the Balanced Budget Amendment issue for 20 years.
One of the primary arguments against the BBA is the prospect that states will be forced to bear an inequitable financial burden if costs are shifted in balancing the budget, making them unwilling to ratify the measure. ALEC, however, has addressed that problem in its recently published Issue Analysis: Up to the Challenge: Why State and Local Governments Can Flourish Under the Balanced Budget Amendment. The paper exposes the cost-shifting argument as groundless and goes on to outline a number of ways states can actually save money if the BBA were enacted. As a membership organization that is closely associated with state lawmakers, ALEC believes there is enough support among the states to ratify the BBA.
`Already 29 states have passed a resolution calling for a limited Constitutional Convention to write a BBA,’ Brunelli said. `That’s more politically difficult legislation to pass than ratification, and it’s only nine states shy of the number of states required to amend the Constitution.’
A constitutional convention is now a gathering for the purpose of writing a new constitution or revising an existing constitution.
To read complete scholarship paper on this: The Recurring Question of ‘the Limited Constitutional Convention Convention’
In 1995 ALEC, the American Legislative Executive Council, which involves 2000 lawmakers (likely conservative) and major corporations, like Koch Industries, Exxon, AT&T, etc.that have writing or state laws for years. The estimate is the these corporations and republican state legislatures have created 800 laws. Talk about campaign donors, in other words these companies getting what they want.
THE BALANCED BUDGET AMENDMENT (Senate – March 02, 1995)
American Legislative Exchange Council, Feb. 24, 1995
[AMERICAN LEGISLATIVE EXCHANGE COUNCIL, FEB. 24, 1995]
More Than 200 Economists Publicly Support Balanced Budget Amendment
(BY KERRY JACKSON AND IAN CALKINS)
Washington, DC., February 24, 1995–By endorsing a letter outlining their support for the Balanced Budget Amendment (BBA), 219 economists from across the country have publicly recognized the threat federal deficit spending poses to America’s future.
Included in the list are such prominent economists as Dr. Richard Vedder of Ohio University, Dr. William Niskanen of the CATO Institute, and Dr. Gordon Tullock of the University of Arizona. The list was solicited by the American Legislative Exchange Council (ALEC) in response to news reports that many economists are opposed to the BBA. ALEC, the nation’s largest bipartisan membership organization of state legislators, instead believes economists recognize the harm in an annual spending deficit that has hit $200 billion and is growing. With support from roughly 3,000 member state legislators, ALEC has been at the forefront of the Balanced Budget Amendment issue for 20 years.
`This list represents the most respected and brilliant minds in the field of economics’ said ALEC Executive Director Samuel A. Brunelli. `What that tells us is simply this: the Balanced Budget Amendment is sound economic policy.’
Brunelli presented the letter and list Monday morning to Senator Paul Coverdell (R-Ga.) during a BBA Coalition meeting, where he reported the list was still growing as he left his office.
`There is a strong intellectual foundation in support of the Balanced Budget Amendment,’ Brunelli told Coverdell. `This is just a representative group of scholars who realize the danger reckless deficit spending has on our present and future economy.’
By endorsing the letter, the economists are saying `there is no rational argument against the Balanced Budget Amendment. Simple observation of the fiscal record of recent years tell us that the procedures through which fiscal choices are made are not working.’ And they understand the `immorality of the intergenerational transfer that deficit financing represents cries out for correction.’
They also acknowledge the BBA would produce an `increase in investor and business confidence, both domestic and foreign.’
One of the primary arguments against the BBA is the prospect that states will be forced to bear an inequitable financial burden if costs are shifted in balancing the budget, making them unwilling to ratify the measure. ALEC, however, has addressed that problem in its recently published Issue Analysis: Up to the Challenge: Why State and Local Governments Can Flourish Under the Balanced Budget Amendment. The paper exposes the cost-shifting argument as groundless and goes on to outline a number of ways states can actually save money if the BBA were enacted. As a membership organization that is closely associated with state lawmakers, ALEC believes there is enough support among the states to ratify the BBA.
`Already 29 states have passed a resolution calling for a limited Constitutional Convention to write a BBA,’ Brunelli said. `That’s more politically difficult legislation to pass than ratification, and it’s only nine states shy of the number of states required to amend the Constitution.’
[Page: S3341] GPO’s PDF
Balanced Budget Amendment–An Open Letter To Congress, February 1995
It is time to acknowledge that mere statutes that purport to control federal spending or deficits have failed. It is time to adopt constitutional control through a Balanced Budget Amendment. In supporting such an amendment, Congress can control its spending proclivities by setting up control machinery external to its own internal operations, machinery that will not be so easily neglected and abandoned.
Why do we need the Balanced Budget Amendment now, when no such constitutional provision existed for two centuries? The answer is clear. Up until recent decades, the principle that government should balance its budget in peacetime was, indeed, a part of our effective constitution, even if not formally written down. Before the Keynesian-inspired shift in thinking about fiscal matters, it was universally considered immoral to incur debts, except in periods of emergency (wars or major depressions). We have lost the moral sense of fiscal responsibility that served to make formal constitutional constraints unnecessary. We cannot legislate a change in political morality, we can put formal constitutional constraints into place.
The effects of the Balanced Budget Amendment would be both real and symbolic. Elected policitians would be required to make fiscal choices within meaningfully-constructed boundaries; they would be required to weigh predicted benefits against predicted tax costs. They would be forced to behave `responsibly,’ as this word is understood by the citizenry, and knowledge of this fact would do much to restore the confidence of citizens in governmental processes.
It is important to recognize that the Balanced Budget Amendment imposes procedural constraints on the making of budgetary choices. It does not take away the power of the Congress to spend or tax. The amendment requires only that the Congress and the Executive spend no more than what they collect in taxes. In its simplest terms, such an amendment amounts to little more than `honesty in budgeting.’
Of course, we always pay for what we spend through government, as anywhere else. But those who pay for the government spending that is financed by borrowing are taxpayers in future years, those who must pay taxes to meet the ever-mounting interest obligations that are already far too large an item in the federal budget. The immorality of the intergenerational transfer that deficit financing represents cries out for correction.
Some opponents of the Balanced Budget Amendment argue that the interest burden should be measured in terms of percentage of national product, and, so long as this ratio does not increase, all is well. This argument is totally untenable because it ignores the effects of both inflation and real economic growth. So long as government debt is denominated in dollars, sufficiently rapid inflation can, for a short period, reduce the interest burden substantially, in terms of the ratio to product. But surely default by way of inflation is the worst of all possible ways of dealing with the fiscal crisis that the deficit regime represents.
Opponents also often suggest that Congress and the Executive must maintain the budgetary flexibility to respond to emergency needs for expanding rates of spending. This prospect is fully recognized, and the Balanced Budget Amendment includes a provision that allows for approval of debt or deficits by a three-fifths vote of those elected to each house of Congress.
When all is said and done, there is no rational argument against the Balanced Budget Amendment. Simple observation of the fiscal record of recent years tells us that the procedures through which fiscal choices are made are not working. The problem is not one that involves the wrong political leaders or the wrong parties. The problem is one where those whom we elect are required to function under the wrong set of rules, the wrong procedures. It is high time to get our fiscal house in order.
We can only imagine the increase in investor and business confidence, both domestic and foreign, that enactment of a Balanced Budget Amendment would produce. Perhaps even more importantly, we could all regain confidence in ourselves, as a free people under responsible constitutional government.
Dr. Burton A. Abrams, University of Delaware.
Dr. Ogden Allsbrook Jr., University of Georgia.
Dr. Robert Andelson (Ret), Auburn University.
Dr. Annelise Anderson, Stanford University.
Dr. Terry L. Anderson, Political Economy Research Center.
Dr. Richard Ault, Auburn University.
Dr. Charles Baird, California State University-Hayward.
Dr. Charles Baker, Northeastern University.
Dr. Doug Bandow, Cato Institute.
Dr. Eric C. Banfield, Lake Forest Graduate School of Management.
Dr. Andy Barnett, Auburn University.
Dr. Carl P. Bauer, Harper College.
Dr. Joe Bell, SW Missouri State.
Dr. James Bennett, George Mason University.
Dr. Bruce L. Benson, Florida State University.
Dr. John Berthound, National Taxpayers Union.
Dr. Michael Block, University of Ariziona.
Dr. David Boaz, Cato Institute.
Dr. Peter J. Boettke, New York University.
Dr. Jeffrey Boeyink, Tax Education Foundation.
Dr. Cecil Bohanon, Ball State University.
Dr. Donald J. Boudreaux, Clemson University.
Dr. Samuel Bostaph, University of Dallas.
Dr. Dennis Brennen, Harper College.
Dr. Charles Britton, University of Arkansas.
Dr. Eric Brodin, Foundation for International Studies.
Dr. Richard C.K. Burdekin, Claremont McKenna College.
Prof. M.L. Burnstein, York University.
Dr. Henry Butler, University of Kansas.
Mr. Ian Calkins, American Legislative Exchange Council.
Dr. W. Glenn Campbell, Hoover Institute.
Dr. Keith W. Chauvin, University of Kansas.
Dr. Betty Chu, San Jose State University.
Dr. Will Clark, University of Oklahoma.
Dr. J.R. Clarkson, University of Tennessee.
Dr. Kenneth Clarkson, University of Miami.
Dr. J. Paul Combs, Appalachian State University.
Dr. John Conant, Indiana State University.
Dr. John F. Cooper, Rhodes College.
Mr. Wendell Cox, American Legislative Exchange Council.
Dr. Mark Crain, George Mason University.
Dr. Ward Curran, Trinity College.
Dr. Coldwell Daniel II, Memphis State University.
Dr. Michael R. Darby, U.C.L.A.
Dr. Otto A. Davis, Carnegie Mellon University.
Dr. Ted E. Day, University of Texas-Dallas.
Dr. Louis De Alessi, University of Miami.
Prof. Andrew R. Dick, U.C.L.A.
Dr. Tom Dilorenzo, Loyola College (MD).
Mr. James A. Dorn, Cato Institue.
Dr. Aubrey Drewry, Birmingham Southern College.
Dr. Gerald P. Dwyer Jr., Clemson University.
Dr. Robert B. Ekelund Jr., Auburn University.
Dr. Peter S. Elek, Villanova University.
Dr. Jerry Ellig, George Mason University.
Dr. John M. Ellis, University of California.
Dr. Kenneth G. Elzinga, University of Virginia.
Dr. David Emanuel, University of Texas-Dallas.
Dr. David J. Faulds, University of Louisville.
Mr. Richard A. Ford, Free Market Foundation.
Dr. Andrew W. Foshee, McNeese University.
Dr. William J Frazer, University of Florida.
Dr. Eirik G Furuboth, University of Texas-Arlington.
Dr. Lowell Galloway, Ohio State University.
Dr. David E.R. Gay, University of Arkansas.
Dr. Martin S Geisel, Vanderbilt University.
Dr. Fred R Glahe, University of Colorado.
Dr. Paul Goelz, St. Mary’s University.
Dr. Robert Gnell, Indiana State University.
Mr. John C Goodman, National Center for Policy Analysis.
Dr. Kenneth V Greene, S.U.N.Y: Binghamton.
Dr. Paul Gregory, University of Houston.
Dr. Gerald Gunderson, Trinity College.
Dr. James Gwartney, Florida State University.
Dr. Claire H Hammond, Wake Forest University.
Dr. Daniel J Hammond, Wake Forest University.
Dr. Ronald W Hanson, University of Rochester.
Dr. David R Henderson, Hoover Institution.
Dr. Robert Herbert, Auburn University.
Dr. A James Heins, University of Illinois.
Dr. John Heinke, Santa Clara University.
Dr. Alan Heslop, Claremont McKenna College.
Dr. Robert Higgs, Independent Institute.
Dr. P.J. Hill, Wheaton College.
Dr. Mark Hirschey, University of Kansas.
Dr. Bradley K Hobbs, Bellarmine College.
Dr. Randall Holcombe, Florida State University.
Dr. Steven Horwitz, St. Lawrence University.
Dr. Doug Houston, University of Kansas.
Dr. David A Huettner, University of Oklahoma.
Dr. William J Hunter, Marquette University.
Dr. Thomas Ireland, University of Missouri.
Dr. Jesse M Jackson Jr, San Jose State University.
Dr. Gregg A Jarrell, University of Rochester.
Dr. Thomas Johnson, North Carolina State University.
Dr. David L Kaserman, Auburn University.
Dr. Robert Kleiman, Oakland University.
Dr. David Klingaman, Ohio University.
Dr. W F Kiesner, Loyola Marymount University.
Dr. David Kreutzer, James Madison University.
Dr. Michael Kurth, McNeese State University.
Dr. David N Laband, Auburn University.
Dr. Everett Ladd, University of Connecticut.
Dr. Harry Landreth, Centre College.
Dr. Stanley Leibowitz, University of Texas–Dallas.
Dr. Dwight Lee, University of Georgia.
Dr. David Levy, George Mason University.
Dr. Dennis Logue, Dartmouth College.
Dr. Robert F Lusch, University of Oklahoma.
Dr. R Ashley Lyman, University of Idaho.
Dr. Jonathon Macey, Cornell University.
Dr. Yuri Maltsev, Carthage College.
Dr. Alan B Mandelstamm, Roanoke, Virginia.
Dr. George Marotta, Hoover Institute.
Dr. J Stanley Marshall, The James Madison Institute.
Dr. Merrill Mathews Jr, National Center for Policy Analysis.
Dr. Richard B Mauke, Tufts University.
Dr. Margaret N Maxey, University of Texas–Austin.
Dr. Thomas H Mayor, University of Houston.
Dr. Paul W McAvoy, Yale University School of Management.
Dr. Robert McCormick, Clemson University.
Dr. Paul McCracken, University of Michigan.
Dr. Myra J McCrickard, Bellarmine College.
Dr. J Houston McCulloch, Ohio State University.
Dr. Robert W McGee, Seton Hall University.
Dr. Mark Meador, Loyola College (MD).
Dr. Roger Meiners, Clemson University.
Dr. Lloyd J Mercer, University of California.
Dr. Richard Milam, Appalachian State University.
Dr. Dennis D Miller, Baldwin Wallace College.
Dr. Stephen Moore, Cato Institute.
Dr. John Moore, George Mason University.
Dr. John Moorhouse, Wake Forest University.
Dr. Laurence Moss, Babson College.
Mr. Bob Morrison, Tax Education Support Organization.
Dr. Timothy Muris, George Mason University.
Dr. J Carter Murphy, Southern Methodist University.
Dr. Gerald Musgrove, Economics America.
Dr. Ramon Myers, Stanford University.
Dr. Michael Nelson, Illinois State University.
Dr. William A Niskanen, Cato Institute.
Dr. Geoffrey Nunn, San Jose State University.
Dr. M Barry O’Brien, Francis Marion University.
Dr. David Olson, Olson Research Company.
Dr. Dale K Osborne, University of Texas–Dallas.
Dr. Allen M Parkman, University of Mexico.
Dr. E C Pasour Jr, North Carolina State University.
Dr. Timothy Patton, Ambassador University.
Dr. Judd W Patton, Bellevue College.
Dr. Sam Peltzman, University of Chicago Graduate School.
Dr. Garry Petersen, Tax Research Analysis Center.
Dr. Manfred O Petersen, University of Nebraska.
Dr. Steve Pejovich, Texas A&M University.
Dr. Timothy Perri, Appalachian State University.
Dr. William S Pierce, Case Western Reserve University.
Dr. Sally Pipes, Pacific Research Institute.
Dr. Yeury-Nan Phiph, San Jose State University.
Dr. Rulon Pope, Brigham Young University.
Dr. Robert Premus, Wright State University.
Dr. Jan S Prybyla, Pennsylvania State University.
Dr. Alvin Rabushka, Stanford University.
Dr. Don Racheter, Central College.
Dr. Ed Rauchutt, Bellevue University.
Dr. Robert Reed, University of Oklahoma.
Dr. John Reid, Memphis State University.
Dr. Barrie Richardson, Centenary College.
Dr. H Joseph Reitz, University of Kansas.
Dr. James Rinehart, Francis Marion University.
Dr. Mario Rizzo, New York University.
Dr. Jerry Rohacek, University of Alaska.
Dr. Simon Rottenberg, University of Massachusetts.
Dr. Roy J Ruffin, University of Houston.
Mr. John Rutledge, Rutledge & Company Inc.
Dr. Anandi P Sahu, Oakland University.
Dr. Thomas R. Saving, Texas A&M University.
Dr. Craig T Schulman, University of Arkansas.
Dr. Richard T Seldon, University of Virginia.
Dr. Gerry Shelley, Appalachian State University.
Dr. William Shughart II, University of Mississippi.
Mr. William E Simon, William E Simon & Sons.
Dr. Randy Simmons, Utah State University.
Dr. Daniel T. Slesnick, University of Tedas–Austin.
Dr. Frank Slesnick, Bellarmine College.
Dr. Daniel Slottje, Southern Methodist University.
Dr. Gene Smiley, Marquette University.
Dr. Barton Smith, University of Houston.
Dr. Lowell Smith, Nichols College.
Mr. Robert Solt, Iowans for Tax Relief.
Dr. John Soper, John Caroll University.
Dr. Michael Sproul, U.C.L.A.
Dr. Richard Stroup, Montana State University.
Dr. Michael P Sweeney, Bellarmine College.
Prof. Ronald Teeples, Claremont McKenna College.
Dr. Clifford Thies, University of Georgia.
Dr. Roy Thoman, West Texas State University.
Dr. Henry Thompson, Auburn University.
Dr. Mark Thornton, Auburn University.
Dr. Walter Thurman, North Carolina State University.
Dr. Richard Timberlake, University of Georgia.
Dr. Robert Tollison, George Mason University.
Prof. George W Trivoli, Jacksonville State University.
Dr. Leo Troy, Rutgers University.
Dr. Gordon Tullock, University of Arizona.
Dr. Norman Ture, Institute for Research on the Economics of Taxation.
Dr. Jon G. Udell, University of Wisconsin.
Dr. Hendrik Van den Berg, University of Nebraska.
Dr. T. Norman Van Cott, Ball State University.
Dr. Charles D Van Eaton, Hillside College.
Dr. Richard Vedder, Ohio University.
Dr. George Viksnins, Georgetown University.
Dr. Richard Wagner, George Mason University.
Dr. Stephen J K Walters, Loyola College (MD).
Dr. Alan R Waters, California State University.
Dr. John T Wenders, University of Idaho.
Mr. Brian S Wesbury, Joint Economic Committee.
Dr. Allen J Wilkins, Marshall University.
Dr. James F Willis, San Jose State University.
Dr. Gene Wunder, Washburn University.
Dr. Bruce Yandle, Clemson University.
Dr. Jerrold Zimmerman, University of Rochester.
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