Missing Constitutional Amendments

In order to establish a society of free, responsible, and self governing individuals following amendments are missing from the US Constitution:

1.       For as long as government runs a central bank the function of this central bank should only be concerned with internal and external monetary stability. Nominal interest rates cannot be set lower than the inflation rate plus some factor (e.g. long-term trend of real GDP growth). The central bank is strictly prohibited from direct or indirect financing of government.

2.       Supreme Court justices should be randomly drawn from a considerable pool of suitable candidates, which ought to include people without judiciary experience or law degrees. Term limits for Supreme Court justices are overdue.

3.       The size of federal government as measured by revenue or expenditures should be limited to a maximum of let’s say 20% of GDP except for extremely extraordinary events. For this purpose, federal government should be defined in a comprehensive way, e.g. including off budget items, Social Security, Medicare etc.

4.       Federal government debt should be limited to maximum of let’s say 30% of GDP except for extremely extraordinary events. For this purpose, federal government debt should be defined in a most comprehensive way, e.g. including promises to future retirees etc.

5.       Federal government needs to completely stay out of providing subsidies to businesses, education, health care, welfare, unemployment insurance, and retirement security except perhaps for the most needy individuals. Free individuals and free markets are capable of handling these areas without government meddling. Besides, if these areas need government intervention at all these areas are prerogatives of the individual states.

6.       Federal taxes should never be confiscatory and should only serve as a source of revenue and not to implement any social or economic policies. Ideally, taxes should be paid exclusively by voluntary choice of free individuals. Confiscatory taxes are defined as cumulative taxes exceeding let’s say 30% of a person’s income irrespective of the form of taxation (e.g. income or sales taxes). The tax code has to be kept very simple. A person’s wealth should be tax free. Businesses should not be taxed.

7.       It is overdue to reign in the many abuses of the Commerce Clause by the federal government and the US Supreme Court. It is quite clear that the original meaning of this clause was limited to commerce in the narrow sense of economic exchange like foreign trade or trade between states.