US Debt Bomb Ticking: Constitutional Amendment on the Table

The United States national debt has surpassed 100% of GDP, reaching a staggering $31.68 trillion, while Congress largely ignores calls to rein in this surge. According to projections by the nonpartisan Congressional Budget Office (CBO), if Washington continues with its standard operating procedures, this figure is set to climb to a stunning 175% of GDP over the next 30 years. History shows that once public debt exceeds 90% of GDP, economic growth slows and major troubles follow; it is time to defuse this debt bomb before a financial crisis engulfs us.

Suffocating Interest Burden

The problem associated with excessive government debt is clearly grasped by looking at the interest burden linked to America’s current debt level.

■In Fiscal 2025, 36.5% of individual income taxes collected were used solely to pay interest on the national debt.

■This means over a third of Americans’ income tax dollars are siphoned away from government goods and services to service past debt.

■The CBO projects that by 2036, an estimated 50.6% of Americans’ individual income tax dollars will be devoted solely to servicing the government’s debt.

The Failure of Legislative Restraints

In the past, Washington has attempted to rein in deficit spending, but these efforts have largely been in vain.

■Congress periodically engages in a debt ceiling charade, wasting time and energy without limiting anything.

■Serious statutory attempts like the Budget Enforcement Act of 1990, the Budget Control Act of 2011, and the Gramm-Rudman-Hollings Act of 1985 have all failed.

■The Gramm-Rudman-Hollings Act, once the most serious attempt to eliminate fiscal follies, was postponed by Congress in 1987 and abandoned entirely in 1990.

Article V and the Path Forward

With Congress proving incapable of exercising fiscal control, the Founders provided an option: Article V of the U.S. Constitution. This lays out the pathway for a fiscal responsibility amendment, with 39 states having filed active applications as far back as 1979.

■At an American Enterprise Institute (AEI) forum, policymakers including Florida Governor Ron DeSantis, former Senator Joe Manchin, and former Comptroller General David Walker gathered to discuss reining in the debt.

■The proposed amendment would cap federal debt held by the public at 110% of GDP, dropping to 90% by Fiscal 2040, absent a formal Declaration of War or a national emergency.

■The amendment includes an automatic enforcement mechanism and renders any member of Congress ineligible for re-election if the amendment is not fully complied with during their term.

This US debt frenzy isn't just a domestic issue for Washington; it acts like a sledgehammer over the global supply chain. As Treasury yields rise, the dollar strengthens, which translates into higher commodity prices and shipping costs. If Washington fails to stop this fiscal irresponsibility, liquidity crises will extend to the ports, and cost pressures on container shipments will reignite global inflation. As a mariner, I say this: they must stop taking on water before the ship sinks.