Time for a Constitutional Fix | Richard W. Rahn | Cato Institute: Commentary

Time for a Constitutional Fix | Richard W. Rahn | Cato Institute: Commentary: "Mr. McClaughry would limit the total amount of federal debt to $20 trillion. Setting an absolute amount makes the calculation unambiguous, unlike most other proposals that refer to some percentage of gross domestic product or other less precise numbers. The United States has a gross debt of about $15 trillion, so the proposal would give Congress several years to get its house in order and give adequate time for the states to ratify it. Mr. McClaughry would allow the issuance of additional debt if, and only if, Congress formally declared war, and only while the armed forces were engaged in combat."

A specific limit would also discourage monetary inflation.