Anyone who reads the news understands that Great Britain is in an almost impossible budgetary situation. Years of uncontrolled domestic social spending and failure to invest in needed military maintenance have left it nearly bereft of its historic military capacity and deep in debt. Much of Europe is in the same or a similar situation. In Britain, successive Conservative and Labor governments have increased spending on domestic priorities while insufficiently funding defense. In the process, they created a set of social expectations that cannot be met over the long run and, at the same time, a situation in which the long-term viability of their country could be in danger. We often hear criticisms of Great Britain without considering whether the very same thing is happening in the United States. The sad truth is that it is.
The story of collapse of the British Empire and its impact on the UK’s finances is long and complex, but there are some lessons that resonate with what’s happening in the United States today. At the beginning of the 20th century, the British pound was the world’s primary reserve currency. Britain was the world’s preeminent military, and especially naval. power. The sun never set on the British Empire. Two World Wars and the end of colonialism changed everything. Britain lost its empire. It ivested heavily in social spending. It nationalized industries that rapidly became uncompetitive. Britain’s enormous public debts, the shift of industrial and economic power to the United States, and increasing dependence on social programs and social spending marked the end of its economic dominance.
The United States isn’t immune to these challenges. The US emerged from World War II as the world’s dominant economic and military power. Since that time, we’ve been involved in several wars financed by debt, and, like others, we’ve seen our industrial strength come under pressure from China and other countries. We’ve also built a large public social welfare system that can be costly and difficult to sustain. Like Britain during the first half of the 20th century, the US faces ongoing concerns about maintaining the dollar’s dominance as the world’s reserve currency. Especially since the COVID-19 crisis, the standard of living in the US has declined, and the national debt has increased dramatically. In other words, the same policy threats that led to the collapse of the British way of life threaten our own economy and way of life.
Our Debt Situation
In this article, I want to set out a reasonably neutral account of the situation in the United States, along with a suggestion for how to get ourselves out of it through a constitutional amendment. I’m not going to talk about specific spending cuts. Frankly, without a mechanism that forces spending cuts on our government, and a trade-off between defense and domestic spending, we can’t escape our growing financial problems. Congress and successive presidents have proven themselves incapable of addressing the issue because of the political consequences of doing so. Therefore, the citizens themselves have to act. If they do not, the United States is doomed to decline.
Because of years of poor financial discipline, the United States has an enormous national debt, and increasing interest costs to finance this deficit will lead to future problems, lowering the standard of living and security for our children and grandchildren. It will also impact our national security. The day will come when we simply cannot afford a military of the size to which we have become accustomed. If we do not want this to occur, today’s generation must take steps to ensure that America is put on a long-term, secure financial footing.
What is the deficit? Quite simply, the deficit is the difference between the funds that the Treasury Department receives in any given year and federal spending against those receipts. If the number is positive, then the United States government has a surplus. If the government spends more than it receives, it runs a deficit. It’s just as simple as that. When there is a deficit, the government has to borrow money in public markets and pay interest on that debt.
Tracking the Federal Deficit: May 2026
For much of American history, deficits were not a problem because our country ran a surplus. Unfortunately, since the Great Depression, the Second World War, and the emergence of the United States as a permanent military power with a significant welfare state apparatus, this has changed. Set out below is a chart showing decades of spending growth in the American economy and the impact on federal spending:[1]
As of today, the total gross national debt of the United States is somewhere around $39.2 trillion. If one assumes that the United States has about 150 million taxpayers, that would be about $290,000 per household. Since many households do not pay any taxes (and in any case could not fund a $290,000 debt repayment), the burden is going to fall somewhere else.
The impact of increased social welfare spending on the budget is recorded in the following chart:[2]
The chart debunks a common assumption: that defense spending is the culprit. This is untrue. Social spending is the largest contributor to federal spending, with rising interest costs an increasingly significant factor. It should be obvious that any sustained attack on the deficit involves straightening out social spending. (This does not mean that the defense budget should escape scrutiny or cost savings.) Finally, our financial situation indicates that taking advantage of uncontrolled federal spending for political or fraudulent purposes to enrich elected and other officials needs to end. We cannot afford it.
How Big is the Problem?
The Congressional Budget Office (CBO) predicts that the federal deficit will probably increase by nearly $25 trillion over the next decade. Health and retirement programs are expected to grow faster than the economy and population, which is a cause for concern because our costs are already high by world standards and these costs impact our competitiveness in the world economy. As the US borrows more, interest costs will rise sharply, potentially taking up half of the federal income-tax revenue. There is a risk that Social Security might become insolvent within six years, which would involve a federal subsidy of those costs. In almost any conceivable situation, spending on social and defense programs would be seriously constrained. More importantly, if we don’t find a solution soon, the savings and financial security of many Americans—both now and in future generations—could be deeply affected, which is something we should all be worried about.[3]
Here is what the future holds for America in terms of budget deficits if nothing is done:[4]
Average voters must understand uncontrolled deficits impact the value of our money, savings, retirement security, and other assets. In the end, deficits could lead to a dollar collapse similar to the pound collapse Britain experienced. This could result in a depression deeper than any our nation has experienced—and wipe out the savings of millions of Americans. Deficits impact the standard of living of the middle and lower middle class disproportionately because of their inability to “hedge” the decline of the value of their money.
What to Do
It should be clear to all Americans that Congress needs financial constraints in order to put our fiscal house in order. Tough choices are necessary, such as cutting spending, setting appropriate tax rates, deciding how Social Security, Medicare and Medicaid should be self-funded, and determining how to distribute costs fairly across groups and generations.
I won’t dive into all the specifics here, but my general idea is that each federal program should become more or less self-sustaining over time. We need to set fair tax rates, and everyone should contribute. Deductions, especially those that distort consumption or favor uneconomic business, need to be minimized. Above all, everyone needs to contribute to meeting our national financial obligations. If only the wealthy pay taxes, they end up controlling our country in the long run. This means that our democratic institutions would be threatened by the reality that most people are not contributing to social spending. Therefore, all Americans must come together, work as a team, and figure out how to row the boat together.
There have been a number of proposals from cutting spending to increasing taxes dramatically, and everything possible in between.[5] Most proposals would have a beneficial impact if enacted, but as a friend of mine says, “Congress does not intend to do a thing about the problem because they know any solution involves pain to some group of voters. They know we are on a pathway to disaster, but they do not have the courage or ability to act.”
Financial Responsibility Requirements
Public spirited citizens have attempted to create various incentives for Congress to balance (or at least reasonably control) the national budget. The last president to try to do so was George W. Bush, who quickly learned that it’s difficult to find a political consensus on this issue. (This is especially true when your Vice President is foolishly telling people that deficits don’t matter.) Without some kind of financial constraint on politicians accustomed to buying votes, it is nearly impossible see how our financial house can be put in order.
There have been many balanced budget amendments, some of which have come fairly close to being enacted. Some of these amendments would imply a very dramatic and quick change in public spending—a risky strategy. It seems to me that the better way forward is to gradually solve our financial problem over time, with the likelihood that both major parties would be in power during a portion of the phase in time. Therefore, here is one possible solution:
Financial Responsibility Amendment yo the Constitution of the United States of America
Section 1: The financial records of the Government of the United States of America shall be kept in accordance with Generally Accepted Accounting Principles.
Section 2: Except as provided for in Sections 2.4 and 2.5 of this amendment, financial outlays of the Government of the United States of America for any year shall not exceed receipts. In order to carry out the requirements of this amendment:
Section 2.1: Prior to each fiscal year, Congress shall adopt a budget for that fiscal year in which total anticipated outlays are no greater than total anticipated receipts, plus any spending to be funded from accumulated surpluses and reserves. Congress may amend such a budget during any fiscal year, provided that revised outlays do not exceed revised receipts. It shall be the duty of Congress and the President to ensure that actual outlays do not exceed the outlays set forth in such budget.
Section 2.2. Without limiting the generality of the foregoing, liabilities for Social Security, Medicare/Medicaid, or other recurring social entitlement payments, including federal pensions, must be accrued and funded year-by-year within the federal budget; provided that Social Security, Medicare/Medicaid, and other recurring social entitlement payments accrued or vested prior to the date this amendment is ratified shall not be required to be so funded, but the cost thereof is subject to the balanced budget provisions of this amendment. Each year, the budget shall show an accrual of, and contain adequate provision for, payment of these items, and the Government Accounting Office and the Office of the Budget shall certify to Congress that taxes levied for payment of these items are adequate to fund such benefits.
Section 2.3. In order to carry out the purposes of this amendment, the budget for each fiscal year shall contain a statement certified by the Congressional Budget Office certifying the reasonableness under Generally Accepted Accounting Principles (GAAP) of the estimated receipts and expenditures for the budgeted fiscal year.
Section 2.4. Congress may, by a two-thirds vote, waive the provisions of this article for any fiscal year in which a declaration of war is in effect and hostilities are ongoing. In addition, whenever three-quarters of the whole number of both Houses shall deem it necessary, Congress may provide for a specific excess of outlays over receipts for any fiscal year.
Section 2.5. This amendment shall take effect in the next fiscal year after the year of its ratification. In order for an orderly transition in the economy, during each of the following twelve fiscal years, the federal deficit calculated as set forth above shall be reduced by no less than one-twelfth of the average deficit for the three fiscal years ending immediately preceding adoption of this amendment. Thereafter, this amendment shall be fully implemented.
Section 3. Beginning on the date this amendment is ratified, Congress may no longer require the states to engage in activities without appropriating funds from the federal budget equal to the additional costs imposed by any such mandate.
Section 4: The President of the United States may veto any line item in any piece of legislation that, in his or her considered opinion, might result in the budget for any year becoming out of balance.
Section 5: Congress may pass no law creating benefits for, or responsibilities on, citizens of the United States of America that do not apply equally and uniformly to all citizens, including members of Congress.
Section 6: Members of Congress shall be liable to recall for any failure to adopt the budgets required by this amendment in any year in which it fails to do so. In addition, no Speaker of the House or Majority Leader of the Senate may continue in such office from and after any year in which there was a failure of Congress to meet the requirements of this amendment, and no member of Congress may be reelected to office who voted for an unbalanced budget in any year.
Conclusion
I’m not so naïve as to think I’ve got the solution to the problem our country faces, but I felt it necessary to at least suggest a possible solution. If anyone has a better, simpler, or more politically viable solution, or any other solution, I’d be happy to hear about it. In the meantime, I think that for the future of our democracy, some kind of balanced-budget and financial-responsibility amendment is the best approach.
As a matter of fundamental public philosophy, I think changes are better done slowly, carefully, and with attention to the potential that a particular strategy is not appropriate. More importantly, I believe that solving the budget problem cannot be done without a conversation and dialogue between our national leaders from both of the major political parties. The problem we face is not a republican problem or a democratic problem. It’s an American problem. Therefore, our leaders need to come together to solve the problem, even though both parties will find some of their priorities constrained by any reasonable solution.
Throughout my years in law, business, and leading churches, I’ve learned that no challenge can be overcome without energy, purpose, and a readiness to face discomfort. This is especially true for issues we’ve let slide for too long, which then cause financial and other difficulties that are tough to fix. In my experience, delaying action on problems right in front of us isn’t a wise choice. Problems won’t improve on their own—they tend to grow without deliberate action. Applying this perspective to our national debt is simple and straightforward: This problem has been increasing while we’ve been hesitant to act. It’s time we stop watching the problem get bigger and start addressing it.
Copyright 2026, G. Christopher Scruggs, All Rights Reserved
[1] US Government Spending.com at https://www.usgovernmentspending.com/debt_deficit_history (downloaded June 18, 2026).
[2] Bipartisan Policy Tracker, Deficit Tracker, https://bipartisanpolicy.org/report/deficit-tracker/ (downloaded June 18, 2026).
[3] See, The Cato Institute, “Here’s the Solution to the Deficit. Hint: It Isn’t Taxes” (March 13, 2026) https://www.cato.org/commentary/heres-solution-deficit-hint-it-isnt-taxes (Downloaded June 30, 2026).
[4] Committee for a Responsible Federal Budget, “CBO’s February 2026 Budget and Economic Outlook” February 11, 2026) https://www.crfb.org/papers/cbos-february-2026-budget-and-economic-outlook (Downloaded June 30, 2026).
[5] See Congressional Budget Office “Options for Reducing the Deficit 2025 to 2034” (December 12, 2024), https://www.cbo.gov/publication/60557 (downloaded June 30, 2026).






















