In an interesting mailing I just received from a political group—Democratic, I believe—I find some points that I think merit some discussion by the experts among you. (I was going to say “among us,” but I will readily admit I am not one when it comes to economic issues.)
So, let me just “throw it out there,” after deleting or modifying some of the more partisan words and claims.
First, the main point of the mailing is that the debt ceiling should be abolished:
If one thing became clear during this most recent default crisis it’s this — the debt ceiling serves no useful purpose and should be abolished.
Why?
• There’s nothing in the Constitution about the debt ceiling. And if Congress wants to reduce spending there’s a process to do so — it’s called the budget process. But despite the cries from [some] about out-of-control government spending, the debt limit doesn’t have much at all to do with spending.
• Instead, the debt ceiling artificially prohibits the government from issuing new debt to pay the bills that are already due based upon previous budgets duly approved by Congress — including budgets supported by many of the people who used the debt ceiling as an excuse to push their policy agenda through [blah, blah blah.]
• America is virtually alone in the developed world in having a debt ceiling, and its existence has now become a major liability to the continued functioning of our democracy.
• …Our country does not have a near-term debt problem. In fact, we face a far greater crisis from the lack of government spending in the midst of an unemployment crisis and a weak economy. And the cuts to spending that were agreed to as a condition of raising the ceiling will only throw more people out of work while simultaneously shredding the social safety net.
• And let’s be clear. The pain and suffering that will result, including but not limited to the additional pain caused by an even weaker economy, was demanded in order to protect the tax breaks for the wealthiest among us and unneeded subsidies for giant corporations.
I have left out some of what might be called demagoguery, but there you have it. What you say?
And, just as I have tried to leave out some of the hyperbole and rhetoric, perhaps the responders—if any—can, too.
Thanks
The author is a retired U.S. Air Force officer and a writer.