This weekend's actions in Congress, as members of the House and Senate wrangle with the debt ceiling and with each other, will be difficult to watch. Both the debt crisis and the political breakdown surrounding it are unsettling for all Americans. Not only must the debt ceiling be raised, but the political crisis must abate enough to reassure global financial markets that the United States will always honor its debts and obligations.
This is the overwhelming consensus of economists, and the stated aim of President Obama and the leaders of both parties in Congress. The roadblock throughout the process has been the refusal of some House Republicans to consider any increase in the debt ceiling, and the take-it-or-leave-it insistence of others on tying their support to wholly unrealistic demands. This is not only unconscionable, but deeply confusing to everyone watching the debate because it paints the issue in false and misleading terms.
It is not correct to say, as so many Tea Party denizens do, that raising the debt ceiling gives anyone, least of all the president, “a blank check.’’ Raising the debt ceiling allows the government to sell bonds to pay for expenses already budgeted by Congress. It does not increase spending. It does not promote more borrowing. If the government spends less it will borrow less, no matter how high the debt ceiling. Refusing to raise the debt ceiling is not, as some Tea Party leaders present it, like declining to take out a new credit card; it’s more like taking a pair of scissors to the credit card you already have and ignoring the unpaid balance. This doesn’t just fail to solve the problem; it makes it vastly worse by destroying your credit rating and ensuring higher interest rates for existing bills.
Debt battle reveals danger of government by slogans - The Boston Globe
This is the overwhelming consensus of economists, and the stated aim of President Obama and the leaders of both parties in Congress. The roadblock throughout the process has been the refusal of some House Republicans to consider any increase in the debt ceiling, and the take-it-or-leave-it insistence of others on tying their support to wholly unrealistic demands. This is not only unconscionable, but deeply confusing to everyone watching the debate because it paints the issue in false and misleading terms.
It is not correct to say, as so many Tea Party denizens do, that raising the debt ceiling gives anyone, least of all the president, “a blank check.’’ Raising the debt ceiling allows the government to sell bonds to pay for expenses already budgeted by Congress. It does not increase spending. It does not promote more borrowing. If the government spends less it will borrow less, no matter how high the debt ceiling. Refusing to raise the debt ceiling is not, as some Tea Party leaders present it, like declining to take out a new credit card; it’s more like taking a pair of scissors to the credit card you already have and ignoring the unpaid balance. This doesn’t just fail to solve the problem; it makes it vastly worse by destroying your credit rating and ensuring higher interest rates for existing bills.
Debt battle reveals danger of government by slogans - The Boston Globe
