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As a foreigner I don’t understand how the debt ceiling is even supposed to work. One year Congress passes a budget. Accordingly Treasury sells debt to raise mo
by pavlov 4y ago
As a foreigner I don’t understand how the debt ceiling is even supposed to work.
One year Congress passes a budget. Accordingly Treasury sells debt to raise money, and money is being spent. In the middle of the year Congress refuses to raise the debt ceiling. What’s supposed to happen to the budget they just passed?
It seems a lot like Congress orders a three-course meal at a restaurant and then refuses to pay when the bill comes in.
You might argue it’s a different Congress refusing to pay the bill, but that’s not a good look either when the US government is supposed to represent stability and continuity.
- zrail 4y agoYou are precisely correct, and that's why it's always been raised. Congress (mostly, but not exclusively, the Republican Party) just uses it as a cudgel to extract budget concessions from the other party in the next budget.
- FooBarBizBazz 4y agoThe only way the debt ceiling would make any sense to me is if it didn't apply to the rolling-over of existing debt. If you want a lever to reduce spending, fine, but it should only apply to things after debt-service, which should be automatic and unquestioned.