Johns Hopkins economist Steve Hanke says Washington cannot discipline its own borrowing and argues that only a limited Article V Constitutional Convention focused on fiscal responsibility can halt America’s debt buildup by allowing states to propose a binding "debt brake" amendment.
Hanke Pushes Constitutional Fix for Debt Crisis
"I spoke with Wealthion on the SOLUTION to the US DEBT PROBLEM," Hanke wrote in an X post on Sunday. "The only way to escape America’s debt crisis is to invoke Article V of the US Constitution and call a limited Constitutional Convention. This would allow for a debt brake amendment to the US Constitution." Hanke has previously called for constitutional fiscal restraints.
I spoke with @wealthion on the SOLUTION to the US DEBT PROBLEM:
— Steve Hanke (@steve_hanke) August 9, 2026
"The only way to escape America’s debt crisis is to invoke Article V of the US Constitution and call a limited Constitutional Convention. This would allow for a debt brake amendment to the US Constitution."… pic.twitter.com/1mHmB9X6HR
Article V requires Congress to call a convention after applications from two-thirds of state legislatures, or 34 states. Any proposed amendment would still require ratification by three-fourths, or 38 states. Hanke wants such a convention narrowly focused on imposing fiscal discipline rather than opening the Constitution broadly.
The Congressional Budget Office did not immediately respond to Benzinga’s request for comment on Hanke’s suggestion.
Debt Burden Keeps Climbing Under Current Policy
The latest Treasury figure put total public debt outstanding at $39.89 trillion as of Aug. 6, including roughly $32.15 trillion held by the public and $7.74 trillion in intragovernmental holdings. CBO projects debt held by the public will reach 101% of GDP by year-end and 120% by 2036, while the annual deficit climbs from $1.9 trillion in 2026 to $3.1 trillion.
Hanke’s proposal does arrive amid broader warnings. Bridgewater Associates founder Ray Dalio recently compared rising debt-service costs to "plaque in the circulatory system," warning they can squeeze out productive spending. Economist Mohamed El-Erian has also warned of a potential Treasury-market "doom loop" as debt issuance grows faster than investor demand.
Experts Warn of Broader Fiscal Risks
JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon has similarly warned that persistent deficits could eventually trigger "some kind of bond crisis". Coinbase Global Inc. (NASDAQ:COIN) CEO Brian Armstrong has argued the Constitution lacks a cap on government spending growth, saying, "There is no mechanism to stop it."
That said, not everyone expects an imminent breakdown. CBO Director Phillip Swagel told Fortune in an interview in April that policymakers still have time to act and argued markets effectively reflect confidence that Congress will eventually respond.
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