America Doesn't Need A Debt Limit

[liberalla]

That's the solution. Eliminate the debt ceiling.

from CSM:

http://www.csmonitor.com/Business/new-economy/2011/0718/America-doesn-t-need-a-debt-limit"> America doesn't need a debt limit

The debt limit debate allows politicians to grandstand on fiscal responsibility. But the debt limit doesn't control how much America borrows. Congress does.


By Donald Marron, Contributor / July 18, 2011

excerpts:
"I realize that sounds strange. With all the Sturm und Drang in the budget talks, you might think that the debt limit is essential to controlling Washington's profligate ways. It's not.

Washington has other tools for managing its finances. The annual budget process includes a series of steps by which Congress decides how much to spend and to collect in taxes. Those decisions determine the size of America's deficits and debt. That simple fact often gets lost in the debate, so let me say it again: When Congress decides how much to spend and how much to tax, it is also deciding how much to borrow.

Unfortunately, the debt limit allows lawmakers to pretend that they can separate the two. Members routinely try to wrap themselves in the flag of fiscal responsibility by voting against debt limit increases. In most cases, though, those members have also voted for spending and tax policies that make those debt increases necessary.

Votes on the debt limit thus usually reflect raw politics, not substantive policy differences. Everyone knows that the debt limit has to rise. But they also know that voters hate debt. So law-makers jockey to see who can win the right to vote no and who must bear the burden of voting yes."


Great article. More at http://www.csmonitor.com/Business/new-economy/2011/0718/America-doesn-t-need-a-debt-limit">link.


I like this idea. This is one issue that should not be up for debate or subject to game playing.

Congress will still have all the same battles over the budget and taxes, etc. but
they won't put our whole economy and credit rating at risk every time.

[Mendocino]

1. They project as being fiscally responsible

but todays budget only pays for yesterdays spending. It's like running up a huge debt on a credit card and then not wanting to pay.

[liberalla]

2. When in fact they are irresponsible

They do like using that credit card - when R's are in office.

No budgeting for wars, tax cuts, Medicare Part D... all off the books.

[Mendocino]

3. You got that,

when a billion a week was being spent on the war in Iraq, what repub was complaining?

[girl gone mad]

4. We're the only sovereign currency nation that has one.

It's pointless.

[liberalla]

5. Another day, another article on getting rid of the debt ceiling

from US News:

http://money.usnews.com/money/business-economy/articles/2011/07/19/do-we-need-the-debt-ceiling">Do We Need the Debt Ceiling?

Some experts say it’s unnecessary and has morphed into a political tool

By Meg Handley
Posted: July 19, 2011

excerpts:

"Republicans and Democrats remain at loggerheads over raising the nation's debt ceiling as the clock ticks down to the August 2 deadline. With all the partisan infighting and investor angst the debate has generated, it might seem like the best thing politicians can do with the debt ceiling is get rid of it.

Even financial sage and former Fed chairman Alan Greenspan has suggested doing away with debt ceiling. "This is an unnecessary problem," he said of the impasse between Democrats and Republicans at the Aspen Ideas Festival in June. "The debt ceiling problem is synthetic and self-administered."

snip

"Congress instituted the debt ceiling in 1917 to avoid having to approve each and every Treasury auction, but by turning what was once meant to expedite debt issuance into grounds for a political tug-of-war, Congress again finds itself in deadlock. Some have called the jostling between parties a "game of chicken," but experts say the stakes are high and the potential economic harm is very real."


More at http://money.usnews.com/money/business-economy/articles/2011/07/19/do-we-need-the-debt-ceiling?PageNr=1">link.

[Romulox]

6. If debt is the key to prosperity, why not borrow twice as much?

Why not quadruple the debt ceiling, and give everybody a million dollars? Hell, why stop there? A billion per American, borrowed money. Why put ANY limit on debt at all?

/sincere question

:shrug: