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What would consumers do if they could arbitrarily print money or raise their credit limit every time they got out of debt? Well, you don’t have to wonder at this hypothetical—the U.S. government is showing you in real-time.
Vox Day addresses two of the main arguments for raising the ceiling:
- Not raising the debt ceiling will threaten creditor confidence in the value of U.S. treasuries and they may reduce the amount of U.S. debt they are willing to buy.
- The debt ceiling should be raised one last time to extract spending concessions from the Democrats.
He blows both of these arguments out of the water in a recent article. Well worth the read.
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The debt ceiling has to be raised to pay for all the spending the Republicans and Democrats have done the last 5 decades. The cuts can’t come from interest on the debt – that will only increase.
Cuts would have to come from military spending (including VA), Medicare and social security. Even cutting the entire rest of government tomorrow wouldn’t be enough (unless you suggest we raise the limit this one time by say $6 or 7 trillion (then we could hold off for a few years. Plus we would have noone left to collect taxes or do other important things like assure we have safe food…
Both parties have repeatedly, for decades, spent the future taxpayers money. When we had a chance to start paying down that overspending about a decade ago, instead the politicians gave huge tax breaks and then spent huge amounts on the wars and bailing out from the financial mess.
The politicians should be held accountable for their overspending, but we show no taste for doing so. Largely because so many supporters of each party have the erroneous belief that their politicians are not the problem.