Here we are once again up against the dreaded debt ceiling. What is it? It’s a self-imposed limit on the amount the U.S. government can borrow that allows politicians to play Russian roulette with the American people. It is a stupid idea because it prevents the government from doing what Congress has already authorized the government to do. Congress passes bills that direct the government to spend money on various programs. Congress also passes bills that impose taxes to pay for those programs. If the taxes are insufficient the government must borrow to pay for what has already been authorized by Congress.
There is a good argument for abolishing the debt ceiling. Fed Chairman Ben Bernanke and Alan Greenspan and many others have called for just that.
But politicians love the Russian roulette game. It gets them in the news and makes them look tough and smart when in fact they are wimpy and stupid. If they were tough and smart they would pass spending bills and tax bills that benefit the American people and the government would borrow when it needs to. Simple as that. If Congress thinks there is too much spending or that debt is too high then Congress has the power to reduce spending and/or increase taxes. The debt limit is a political football in the Super Bowl of politics. It’s redundant and silly but the damage it wreaks is real. There is an abundance of material you can read for further and more detailed information listed at the links below. Hope for the best but prepare for the worst given the political divisions in America today.