- Chapter summaries - What does the amendment say?
Chapter summaries

What does the amendment say?

The People's Amendment tears up the blank check given to the government by establishing a ceiling on government income+debt and by placing control of the ceiling in the hands of the people. The ceiling is expressed as a percentage of the income of the economy, or GDP, so that the ceiling will grow as the income of the economy grows.

This will make government fiscally responsible for two reasons. First, the people earn the money and own the money, so they will protect their money. Second,a citizen vote is private, making a citizen vote immune to the coercion of interest groups. The results are evident in California and Washington State, where fiscal restraint is imposed on the state government by the people through initiatives

To see the amendment text, click "Amendment" in the header. Note that in the amendment I refer to government income+debt as the price of government — the price that the government, as a monopoly, imposes on the people as a result of the blank check. Also note that since the price of government is defined as a percentage of gross domestic product, or GDP, it can grow as the income of the economy grows, though the people can reduce the fraction as low as they wish over time.