The National Debt Crisis: Insights from Rep. Gino Bulso

In a recent conversation on the podcast Signature Required, I sat down with Tennessee State Representative Gino Bulso to unpack a looming issue that's been a part of American history for decades but now has reached a tipping point: the national debt. Representative Bulso, a constitutional conservative and strong advocate for a limited federal government, believes the $33 trillion national debt is more than just numbers on a page. It’s a threat to the nation’s financial stability and our children’s future.

The Rise of the National Debt: How Did We Get Here?

Rep. Bulso began his journey as a debt hawk as a teenager when he noticed a rising national debt under President Ford in 1975. At that time, the national debt was about $533 billion. Now, it's over $33 trillion, and Rep. Bulso's concerns have only deepened. He explained that federal spending has exploded, growing far beyond what the framers of the Constitution could have envisioned. Today, two-thirds of the federal budget is tied up in entitlement programs like Social Security, Medicare, and Medicaid, with little room for debate or control. Meanwhile, interest on the debt now rivals and even surpasses the U.S. defense budget.

The Impact on Future Generations

As Rep. Bulso and I discussed, the concept of compounding interest—often touted as a cornerstone of wealth creation—has a dark side. In the case of the national debt, compound interest is driving America toward financial instability. Each year, interest payments on the debt alone consume funds that could be used for infrastructure, education, and other vital areas. If unchecked, this compounding interest will place an even greater burden on future generations, potentially diminishing their quality of life and limiting their opportunities.

State-Level Solutions: Bringing Power Back to the States

A pressing question emerged during our conversation: how can a state-level politician impact a national problem like the federal debt? Rep. Bulso’s answer is rooted in his firm belief in the Tenth Amendment, which reserves powers to the states not explicitly granted to the federal government. Rep. Bulso’s approach involves leveraging state authority to bring the issue before the U.S. Supreme Court, arguing that the federal government’s spending has grown far beyond its constitutional mandate.

In 2022, he filed a bill, approved by both the House and Senate and signed by Governor Lee, that allows Tennessee to challenge federal spending in court. The goal is to revisit a landmark 1936 Supreme Court case, U.S. v. Butler, which expanded the federal government’s power under the "general welfare clause." Rep. Bulso believes that returning to the original intent of this clause, as understood by figures like James Madison, would curb federal overreach and restore financial sanity.

The Balance Between Federal and State Spending

In an ideal outcome, the Supreme Court would agree with Rep. Bulso’s arguments, forcing the federal government to scale back its involvement in areas traditionally reserved for states, like education. This shift wouldn’t be easy or immediate. But Rep. Bulso believes it’s possible, arguing that each state should decide its spending priorities based on local needs and values.

As Rep. Bulso pointed out, states like Tennessee could choose a conservative approach to programs like healthcare and education, while other states might expand them based on local preferences. This return to federalism would mean that state governments, which are closer to the people they serve, would have more say in how taxpayer dollars are spent.

Moving Forward with Courage

While recognizing the political courage required to make this change, Rep. Bulso emphasized that it is crucial to address the debt crisis before it spirals further out of control. He calls for Americans to adopt a “salad” approach to budgeting, a metaphor for taking the fiscally responsible, if less popular, path forward. It may not be an easy transition, but it is necessary to secure a stable future.

A Call to Educate and Empower

In closing, Rep. Bulso underscored the need for Americans, particularly young people, to understand the nation’s fiscal history and take an active role in shaping its future. Rep. Bulso urges citizens must push for policies that reflect the original intent of the Constitution and demand that our representatives act with integrity and fiscal responsibility.