Budgeting for the People: Restoring Representation in Government Spending
“No taxation without representation” rang out as powerful rallying cry during the American Revolution, and self-government was a fundamental principle in the founding of the United States. This principle meant that before a single cent of taxpayer money could be spent, we the people, through our elected representatives, could have our say. This restraint on arbitrary power helped foster investment, entrepreneurship, and economic growth, transforming the American economy into a global beacon of innovation and prosperity.
Unfortunately, this essential check on government spending is breaking down. Each year, an ever-larger portion of the federal budget is just not getting scrutinized the way it should be.
The budget is divided into so-called “mandatory” and “discretionary” spending, financed with taxes and borrowing. To receive funding, discretionary spending requires an annual review and congressional vote. Mandatory spending, on the other hand, continues automatically—no reconsideration, no debate, no vote. In the 1960s, discretionary spending accounted for around two thirds of spending. By the late 1990s, it was closer to half. Today, it’s barely over a quarter. The majority of spending and financing is now largely without representation.
The erosion of this guarantor of fiscal responsibility has led to an out-of-control deficit and crippling inflation. Deficit spending causes inflation by forcing the Federal Reserve to monetize the debt.
At this point, about 11.5% of federal spending is just making interest payments on the debt. Meanwhile, inflation has hit the American consumer hard. The average family now needs an additional $11,400 to maintain the same lifestyle they had in 2021.
The solution lies in repairing the mechanisms of congressional budgeting that once helped make the American economy the envy of the world. Here are four remedies
- Create a comprehensive budget: All spending and revenue policies should be up for debate, and squarely under the scrutiny of our members of Congress. Proposals like the Comprehensive Congressional Budget Act of 2024 would restore true oversight by helping Congress build a real budget from the contributions of many committees.
- Accountability for presidents: Congress can’t do do annual budget or security legislation as well without timely information from the executive branch. Innovative legislation like The Submit It Act is a step in the right direction. The measure wouldn’t let the president give the State of The Union address until he submits a budget request and national security strategy to Congress.
- Prevent government shutdowns: The all-too-common drama of government shutdowns is costly political theater that centralizes power and bloats budgets. We can get better results by keeping current spending in place when new appropriations bills are not passed instead of having shutdowns. The Prevent Government Shutdown Act does exactly that, in addition to requiring Congress to stay in session until appropriations are completed.
- Restore congressional authority: Congressional oversight of the budget means little if the president merely needs to declare something a “national emergency” and spend whatever he likes. A bill along the lines of the ARTICLE ONE Act would reclaim Congress’s authority over federal spending by ending emergency declarations after 30 days unless Congress affirmatively approves them.
We believe in the potential of the American people. By returning control of the purse to our representatives we can rein in unsustainable deficits, tame inflation, and unleash the entrepreneurial spirit that has always been the true driver of American prosperity.
Learn more about our solutions for a prosperous America here.
