Malcolm Rivera
The US Constitution's Fourteenth Amendment, also known as the Public Debt Clause, deals with the country's national debt. The national debt is the total amount of money the US federal government has borrowed to cover its expenses over time. The US has carried debt since its inception, with debts incurred during the American Revolutionary War amounting to $75 million. The national debt allows the federal government to fund important programs and services for its citizens. The Public Debt Clause distinguishes between the national debt and any debts incurred from supporting an insurrection or rebellion against the country.
| Characteristics | Values |
|---|---|
| Name of the Part | Fourteenth Amendment's Public Debt Clause |
| Other Names | Debts Clause, Engagements Clause, or Debts and Engagements Clause |
| Purpose | To recognise the debts and engagements of its predecessor governments, namely the Continental Congresses and the federal government under the Articles of Confederation |
| Validity of Public Debt | Shall not be questioned |
| Exceptions | The US or any State shall not assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the US |
| Applicability | Applicable to debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion |
| Applicability | Not applicable to any claim for the loss or emancipation of any slave |
| Applicability | Not applicable to debts incurred from supporting an insurrection or rebellion against the country |
| Applicability | Not applicable to the compensation of former slave owners |
| Applicability | Not applicable to the Confederacy's war debts |
| Recent Proposal | To allow the president to raise the nation's debt ceiling without congressional approval |
| National Debt | Total amount of outstanding borrowing by the US Federal Government accumulated over the nation's history |
| Components of National Debt | Non-marketable or marketable securities |
| Components of National Debt | Debt held by the public or debt held by the government itself (intragovernmental) |
Explore related products
What You'll Learn
The Fourteenth Amendment's Public Debt Clause
The full text of the Public Debt Clause is as follows:
> "The validity of the public debt of the United States, authorised by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void."
This clause has been interpreted to have a broader connotation than just addressing the debts incurred during the Civil War. Justice Hughes interpreted the clause as embracing "whatever concerns the integrity of the public obligations" and applying to government bonds issued both before and after the adoption of the Amendment.
In recent years, there has been a debate among legal experts about whether the Public Debt Clause could be used by a president to raise the nation's debt ceiling without seeking congressional approval. However, this theory has not been tested in the courts, and no president has attempted to do so.
The Public Debt Clause is also relevant to discussions about the statutory debt limit and government actions that create substantial doubt about the validity of the public debt. Some scholars argue that the clause is violated when government actions, such as Congress's conduct during certain debt-limit debates, create substantial doubt about the government's ability to meet its financial obligations. Federal spending and the deficit are impacted by this.
The Constitution's Opposition: Overcoming the Divide
You may want to see also
The role of the Treasury in funding the national debt
The US national debt is the total amount of borrowing by the US federal government over the nation's history. The US has carried debt since its inception, with debts incurred during the American Revolutionary War amounting to $75 million, borrowed primarily from domestic investors and the French government. The national debt is composed of distinct types of debt, including non-marketable or marketable securities, and whether it is debt held by the public or debt held by the government itself (intragovernmental). The US Constitution's preamble states that the purpose of the federal government is:
> "...to establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity."
Uninterrupted funding of programs and services is critical to residents' health, welfare, and security. The national debt enables the federal government to pay for important programs and services even if it does not have funds immediately available, often due to a decrease in revenue. The US Treasury uses the terms "national debt," "federal debt," and "public debt" interchangeably. The Treasury is divided into two divisions: departmental offices and operating bureaus. The departments are mainly in charge of policymaking and managing the Treasury, while the bureaus handle specific operations.
The debt ceiling, or debt limit, is a restriction imposed by Congress on the amount of outstanding national debt that the federal government can have. The debt ceiling is the amount that the Treasury can borrow to pay the bills that have become due and pay for future investments. Once the debt ceiling is reached, the Treasury can use extraordinary measures authorized by Congress to temporarily suspend certain intragovernmental debt, allowing it to borrow to fund programs or services for a limited amount of time after reaching the ceiling.
Constitution's Three-Part Accomplishment: Unity, Liberty, and Justice
You may want to see also
The Constitution's Preamble
The Preamble to the United States Constitution outlines the purpose of the federal government, stating:
> " [...] to establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity."
The Preamble's reference to "provide for the common defence" and "promote the general Welfare" is particularly relevant to the topic of national debt. The national debt is the total amount of outstanding borrowing by the federal government, which enables it to pay for important programs and services for its citizens.
The Constitution's recognition of the importance of a strong central government and its role in promoting the general welfare includes addressing the national debt. The ability to borrow and manage debt is essential for a government to function effectively, particularly in times of emergency or financial strain. Alexander Hamilton, the first US Treasury Secretary, argued that a "national debt, if it is not excessive, will be to us a national blessing."
Additionally, the Fourteenth Amendment's Public Debt Clause, added after the Civil War, further emphasizes the federal government's commitment to addressing the national debt. It distinguishes between the national debt and any debts incurred from insurrection or rebellion and prohibits the use of federal funds to compensate former enslavers.
The Constitution's Army: Founding Fathers' Military Vision
You may want to see also
Explore related products
$63.99 $63.99
The Debts and Engagements Clause
The clause provides continuity in financial obligations, stating that:
> All debts contracted and engagements entered into, before the adoption of this Constitution, shall be as valid against the United States under this Constitution, as under the Confederation.
This assurance was included to maintain confidence among foreign and domestic creditors, particularly in the aftermath of the American Revolutionary War, which was largely financed through borrowing. The clause reinforces the validity of these debts and engagements, ensuring they remain the responsibility of the United States even after the transition to a new constitutional framework.
The inclusion of the Debts and Engagements Clause in the Constitution was a subject of debate at the Constitutional Convention in 1787. The original proposal, known as the Debts Clause, stated that the US Legislature would have the power to fulfil engagements entered into by Congress and discharge the debts of the United States, including those incurred during the war for common defence and general welfare. However, there was disagreement over the use of the word "shall" in the clause, with some arguing for a more flexible phrasing.
Exploring Georgia's Constitution: Understanding Its Key Components
You may want to see also
The role of Congress in raising the debt ceiling
The United States Constitution grants Congress the sole authority to borrow money on behalf of the country. The role of Congress in raising the debt ceiling is crucial to prevent the federal government from defaulting on its legal obligations.
The debt ceiling is the limit set by Congress on how much the Treasury can borrow to pay the nation's bills and honour the commitments that Congress has already made. When the debt ceiling is reached, Congress must pass legislation to raise or suspend the limit. If Congress fails to act, the federal government risks defaulting on its debts, which would have catastrophic consequences for the American economy and citizens.
Since 1960, Congress has acted 78 times to raise, temporarily extend, or revise the debt limit, demonstrating its recognition of the importance of this issue. For example, in December 2021, Congress raised the debt ceiling from $28.9 trillion to $31.4 trillion, allowing the government to continue borrowing until a new limit was reached in January 2023.
However, there have been instances of political battles and impasses over raising the debt ceiling, particularly when Congress and the President are of different political parties. In 2011, Republican-led brinkmanship led to a delay in raising the debt ceiling, resulting in the nation's first credit downgrade and increased borrowing costs. Similar delays occurred in 2023, causing another credit downgrade.
To address the debt ceiling and prevent default, Congress can choose to raise the limit by a fixed dollar amount or suspend the debt limit for a specified period. The Treasury Secretary may also employ "extraordinary measures" to create temporary headroom under the debt ceiling and avoid defaulting on the national debt. However, these measures are not a long-term solution, and Congress must ultimately act to raise the debt ceiling and ensure the government can meet its existing obligations.
Freedom of Speech: Original Constitution's Missing Piece?
You may want to see also
Frequently asked questions
The national debt is the total amount of money the US federal government owes to other bodies, including foreign governments and its own citizens.
The US Constitution's Fourteenth Amendment includes a Public Debt Clause, which deals with national debt. The Constitution also includes a Debts Clause, also known as the Engagements Clause or Debts and Engagements Clause.
The Public Debt Clause distinguishes between the national debt of the US and any debts incurred from supporting an insurrection or rebellion against the country. It also prohibits the use of federal money to pay the debts of those who acted against the country or to compensate former slave owners.
