National Platform of the Libertarian Party
Adopted in Convention, May 2004, Atlanta Georgia
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II. Trade and the Economy
Government Debt
The Issue: Government debt forces individuals to assume debt that they did not choose to incur; distorts capital markets and rates and ruins the economy.
The Principle: Government must not incur debt, nor should it be allowed to hold assets, for these are debts incumbent on and assets taken away from the individuals of this country.
Solutions: We support the drive for a constitutional amendment requiring the national government to balance its budget, and also support similar amendments to require balanced state budgets. To be effective, a balanced budget amendment should provide:
a. that neither Congress nor the President be permitted to override this requirement;
b. that all off-budget items are included in the budget;
c. that the budget is balanced exclusively by cutting expenditures, and not by raising taxes; and
d. that no exception be made for periods of national emergency.
Governments facing fiscal crises should always default in preference to raising taxes.
Transitional Action: The Federal Reserve must be forbidden to acquire any additional government securities, thereby helping to eliminate the inflationary aspect of the deficit. At a minimum, the level of government should be frozen.
