How our Obamacare Lawsuit can solve the Debt Crisis
This week’s deal to raise America’s debt ceiling is a prime example of why we must restore our Constitution by overturning Wickard v. Filburn. The Federal government is not Constitutionally authorized to do most of what it does. Our crushing national debt comes primarily from costs associated with doing things that the Federal government shouldn’t be doing in the first place.
Our Founding Fathers never envisioned a government capable of regulating every aspect of our lives. In fact, such a government was exactly the type of despotism that the Constitution was intended to prevent. We now have a Federal government that tells us we have to buy health insurance, what type of light bulb we can use and how much water we can use to flush our toilets. It tells us that our children MUST go to school, and then it tells us what they must learn, what they CAN’T learn, and how it must be taught. Does anyone truly believe that this is the type of government that our Founding Fathers fought to create?
Every law, regulation, and tax passed by Congress requires countless Federal employees to implement, monitor, and enforce. All this costs money. So, the deal we get from the Federal government is this: give us your money so we can take your freedom.
America now owes over $14.5 Trillion. That’s over $46,000 per American (including children), or more accurately, over $130,000 per tax-paying American. The Federal government’s revenue is just over $2.2 Trillion per year. It currently spends $3.6 Trillion per year. Those numbers are beyond normal human comprehension. So, let’s put them into perspective: The average American household has an income of about $50,000 per year. If that average household ran like the Federal government it would spend $87,833 per year, and would already have credit card balances of $310,741. Do you see the problem?
The debt ceiling deal is exactly like this hypothetical household running into its credit limit, but rather than bringing its spending below its income, it raises its credit limit. This has been Congress’ answer to the national debt every time it has reached its credit limit. Rather than addressing the problem, Congress simply raises the credit limit. We all know where that ends.
America’s credit limit has a ceiling that cannot be raised by Congress, and we are about to bash our heads into it. As I said, Federal revenue is about $2.2 Trillion per year. (That amount changes depending upon the economy, inflation, and tax rates, but history shows that tax revenues never exceed a certain percentage of its gross national product.) We currently owe $14.5 Trillion. That’s more than 6.6 times our annual revenue. If the Federal government stopped spending a dime, today, it would take more than six and a half years to pay off our debt, and that is assuming no interest. That is if we spent $0 on defense, $0 on infrastructure, $0 on social security, $0 on medicare, $0 on Federal employees and $0 on everything else, and paid no interest on our debt. Do you see the problem yet?
Now let’s talk about interest on the debt. Interest on the debt is what creates a credit limit that cannot be removed by legislation. In the near future the interest payments alone will exceed Federal revenue. Interest payments alone for this year will be $412 Billion. That’s just under 19% of the Fed gov’s revenue. The Congressional Budget Office says that in about 30 years interest on the national debt will equal 100% of the Federal revenue. THIS is our absolute credit limit.
At this point 100% of the money collected from Americans will be needed to pay interest on debt alone. No defense, infrastructure, social security, medicare, education, welfare, unemployment, federal employees, or anything else will be paid by the Federal government. This, of course means that the Federal government would no longer be able to collect its revenue, because the Federal government would no longer exist. The real collapse would happen much sooner than this. Once the Federal government is forced to spend 50% or 60% to pay interest on the debt, it will seriously lose its ability to run the country. This will also force it to borrow more money, accelerating the death spiral.
The CBO’s estimate assumes that Congress won’t raise spending (yeah, right) and that global interest rates will not increase. If either of these things happen, and they both will, then the absolute credit limit moves closer to the present. This is why the debt debate is not a political debate. It's not really a debate at all. We are now dealing with hard economics that someday soon nobody will be able to deny.
All of this debt is a result of the Federal government doing things it isn’t Constitutionally authorized to do. If the Federal government was limited to its Constitutionally authorized activities, we would have no deficit and no debt.
If we succeed in overturning Wickard v. Filburn, Congress will be forced to stay out of most issues designated for State or individual control. If we succeed, Federal revenue will once again exceed its spending and we can make real headway towards paying down our debt.
We must return our Federal government to its pre-1942 mission. Without such a return to the Constitution, our country is doomed. We can do that with one victory: a Supreme Court ruling overturning Wickard v. Filburn.
That is why Liberty Legal Foundation is fighting the Obamacare Class Action lawsuit. That is why we need your continued support.
In Liberty,
Van Irion
Co-Founder, Lead Counsel
LIBERTY LEGAL FOUNDATION
"We must not let our rulers load us with perpetual debt. We must make our election between economy and liberty or profusion and servitude. If we run into such debt, as that we must be taxed in our meat and in our drink, in our necessaries and our comforts, in our labors and our amusements, for our calling and our creeds...[we will] have no time to think, no means of calling our miss-managers to account but be glad to obtain subsistence by hiring ourselves to rivet their chains on the necks of our fellow-sufferers... And this is the tendency of all human governments. A departure from principle in one instance becomes a precedent for[ another]... till the bulk of society is reduced to be mere automatons of misery... And the fore-horse of this frightful team is public debt. Taxation follows that, and in its train wretchedness and oppression." - Thomas Jefferson
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