Is it Time to Eliminate the Debt Ceiling?

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The advent of a government shutdown is upon us as we reach our ever insufficient debt limit. Once again the extreme factions of the Republican Party are holding the country to ransom. Government workers are having sleepless nights, wondering whether they will get their paycheck this month. Parents are terrified that government schools may be shut down and their children’s educations compromised. Elderly people are worried that they might not get their social security or government pension. Is all this pain really necessary?

The concept of a debt ceiling comes from an era that never foresaw the need for borrowing in the amounts that our government requires today. The whole concept of a debt ceiling assumes that debt is somehow an inherently bad thing. The reality is that debt is a natural part of any healthy economy. Banks finance businesses large and small everyday with debt. Businesses invest the money they raise in revenue generating projects and use revenue to pay the interest on their loans. But businesses have no concept of a “debt limit”. They borrow what they need when they need it. If businesses don’t have debt limits, why should our government have one? Governments need financing just like businesses. Businesses need to invest in operations and new ventures and our government needs to invest in the economy and services that keep the country running smoothly. And for those who think our government has borrowed too much, I would like to point out that bond rates are at record lows!

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So, people ask, why can’t the government run on tax revenue alone? For the same reason businesses can’t run on revenue alone; our government needs to provide essential services and invest in the economy now. Schools, hospitals, pensions and social security can’t just stay on hold while we wait for tax revenue to grow. The only way tax revenue will grow is if we invest ahead of the curve by spending money on infrastructure and other fiscal stimulus projects. This is why I firmly believe that the debt limit is a danger to our economy and should be eliminated. Some may think this is a controversial view, but the truth is it is founded on nothing but common sense and basic economic principles.

1 COMMENT

  1. Exactly. We raise the debt ceiling so often anyway, it’s basically a non issue. These days, the corrupt GOP merely uses it as a mechanism to stonewall the President’s hard work.

    I’d also advocate an end to the words “spending”, “debt” and “entitlements” entirely – we’re dealing with investments. Diction makes all the difference, observe:

    – Obamacare is one of the most important investment programs of our time.

    – No other president in history has invested as much money in the middle class as Obama (more than the last 5 presidents combined).

    – The level of national investments is tremendously high ($52,000 per American citizen).

    • Exactly traderschild! People need to understand that government spending is an investment in the future. If we invest in the economy now, we’ll have more than enough money to pay back the debt later. It’s just common sense.

      • We need a Constitutional Amendment …. to outlaw Debt Limits, forever …. let’s make it permanent …. commitments like that ….. improve one’s credit worthiness !

      • Yes, and with these low, low rates, it’s like the more we borrow, the more we save. The debt ceiling is only kept around for racist republican tea partiers to embarrass President Obama.

        We need more investment in the US’s strengths- diversity is at the top of that list. Look at what we were able to do with Somalis imported into Minnesota: after a short time, they were so into the American way that a bunch were able to amass wealth and then get tickets to travel to that mall in Kenya for some R&R. Think about all the extra input into the economy from this, airlines, weapons dealers, you name it.

        This highlights how the American dream is about “access” and “opportunity.” The more diversity we can invest in now, the faster we can make the entire country like Detroit, where minority empowerment is finally fully enfranchised. Things like the debt ceiling and republicans are standing in the way of this

        • Trickle down is too niggardly …. we need race horse pissing after a race gush down …. to spread the wealth and opportunity …. you have to give …. in order to receive …. we have an opportunity …. to make amends for all the social crimes of the past …. with borrowed money …. it’s a win win …. for every wiener ?

  2. “But businesses have no concept of a “debt limit”. They borrow what they need when they need.”

    Incorrect. If a business exceeds it’s “debt limit” they will stop being loaned new capital and go out of business. Even healthy companies cannot take on more debt than reasonable amount of leverage to their assets/ability to pay back.

    The US Government is losing it’s trust that it will be able to pay back its obligations, thus, it should not be extended unlimited credit.

    Go bonk yourself on that accredited logic.

  3. I’m a “No Debt Limit Nigger” …. just like Trayvon Martin Zimmerman …. was a “No Limit Nigger” …. let’s have some fun …. with the credit card ….. maybe the government …. would buy some PMs for the national stockpile …. with some of the fiat …. Let’s Party ! Why do I call Trayvon such …. I believe that when someone kills you …. they own you …. they have fucked you …. and you are now their progeny …. it’s called Karma …. so Trayvon will always be a Zimmerman, now ! Monedas 1929 Comedy Jihad Drunk On Fiat World Tour

    • All the money …. greedy anti-social types …. spent on Gold …. the relic …. was a self imposed tax …. which will be collected with confiscation !

  4. Nowadays with you Americans I can’t say anymore who is being sarcastic and who is an ass.
    Re low rates; google for primary dealers and see who they make legal what is basically illegal. You borrow from the printing press and foreign lending to US gov has taken a complete nosedive.
    The barbaric relic is shipped in massive amounts to the East while jpm keeps the price low for the chinese by massive naked shortselling.
    But as I said, I can’t say who is being sarcastic so apologies to those and good luck to the others 😉