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> it's also the only speed bump left to unlimited money printing. I have never once heard during the budget negotiation process, "we cannot increase this budge
by agar 3y ago
> it's also the only speed bump left to unlimited money printing.
I have never once heard during the budget negotiation process, "we cannot increase this budget because it will put us over the debt limit."
The debt limit restricts the US from paying for things it has already purchased. It in no way stops the US from purchasing them, or budgeting for them, in the first place.
Using the debt limit as a means of controlling future budget negotiations (in other words, "adopt my budget priorities or I will tank the economy") is exactly why Fitch downgraded US debt, thereby increasing the cost of debt service and exacerbating the problem you're concerned about.
- nostromo 3y agoExcept in practice it certainly does. In 2023 the negotiations on the debt limit cut $1.5T in projected debt over the next 10 years. Both parties were unhappy but agreed to the cuts. Btw, $1.5T is not nearly enough. In 2033 we'll "only" be $46.7T in debt instead of $45.2T, which is basically not enough to move the needle. https://www.cbo.gov/publication/59260 https://www.cbo.gov/publication/59260
- WWLink 3y agoQuick! We need to throw all the disabled people out on the street so we can make an excel spreadsheet look better!
- deleted 3y ago[deleted]
- gochi 3y agoThat's misleading. GOP employed their usual tactic of being completely fine with defaulting, and used split congress to force the cuts they wanted through. >McConnell said that Republicans would not block a short-term increase of the debt limit until December, as long as Democrats met certain conditions. It would be nice if both parties were unhappy! However it's very clear which party owns power when it comes to the debt ceiling here, and the other bearing the potential burden of causing financial ruin.
- tdhz77 3y agoFinally a person that can see through the political Bullshit. Thank you