Debt ceiling- intelligent discussion plz

This is going to become a hot topic soon. I'm hoping this thread can be for reasoned discussion. If you want to yell at "teabaggers" or "socialists" please use another thread. Our country regularly runs up debt and this discussion is about whether or not to repay debt already taken on. Both parties put charges on the credit card, so pretending that one side or the other is 100% culpable is foolish. This debt was incurred in our names on on our behalf. Should raising the debt ceiling be an opportunity for political brinkmanship, or is it the responsibility of Congress to craft a budget that fits within the existing debt ceiling?

Balanced budget? While I like having states be forced to stay within a balanced budget, I think it can be dangerous for our national goverment to cut spending or increase tax rates when tax revenues decline during a recession, or economic crisis. The problem, it seems like America is never not in economic crisis. When is it OK for the Feds to raise taxes and decrease spending.

I agree, but then I argue against the fight to raise the debt ceiling. I believe we should not borrow money and then threaten to not repay it. It seems shady to me.

Debt ceiling? In one way, it should just be done with. Goverment baseline spending is setup to increase every year so you will have to up the ceilings all the time...but sometimes it seems that these are the only times the Feds and public ever seriously look at slowing the increase.

chickaree wrote: I agree, but then I argue against the fight to raise the debt ceiling. I believe we should not borrow money and then threaten to not repay it. It seems shady to me.

Isn't the debt ceiling more about borrowing more vrs not paying back what we have already borrowed?

It's an artificial construct anyway, and as "policy", it's outlived its usefulness. Since it applies to money already spent, rather than authorizing any new spending, it's become nothing more than a point of leverage for political fights. Eliminating it doesn't alter anything about working on the budget and spending reductions, and revenue increases... But I think the biggest reason the idea scares some is "Without it, what would we do for leverage? What else could we use to 'shoot the hostage'?" It has NOTHING to do with authorizing more spending.

Eliminate the Debt Ceiling Altogether, Says Senior Fellow at Brookings

Moody's suggests U.S. eliminate debt ceiling

Tim Geithner's Solution To The Debt Ceiling Is So Reasonable, Nobody Could Possibly Object

The debt ceiling must go

When my daughter was in high school and had her first job, I got her a credit card, and we began the lessons in fiscal responsibility. She knew what her debt limit was.....no, not the credit limit on the card, but how much money she would have to pay it off in full every month after taking out her other expenses. That to me is what our government needs to do going forward....however, the money had already been spent, the bills are owed, and there shouldn't even be a discussion on whether or not we pay our bills. Of course we do, any other option is unthinkable. But we cannot keep doing this. I have continually advocated for balancing the federal ledger, more revenue and less spending with the goal of not having to raise the debt ceiling every year. But to hold our country hostage over a political difference of opinion over how to accomplish a balanced budget, and allow if to default on our obligations is pure folly.
Just do it, and then please start NOW on making the tough decisions and the compromises thrust will fix this issue going forward. The last minute theatrics do not serve this country well.

Short term, the feds are able to borrow in order to ride out dips in the economy.

Long term, the feds need to look at a reduction in services offered in order to match what has apparently become the new 'normal'.

If they are allowed to keep raising the debt ceiling, they will never have to face that reality and we'll wind up with a crashing economy.

It's difficult, as we've all become accustomed to the feds donning their super hero underoos and jumping into situations with cash flowing out freely singing "Here I come to save the day".

But that was in the past. The federal government needs to shrink. It's taken on too much - many of the things it's taken on belong at the local level in any case.

Slow declines in government spending are what's needed. Nothing fast, nothing drastic. You don't turn an ocean liner on a dime. We've enjoyed reductions in taxes lately, and while I'm loathe to admit it, we need to pay more short term while the spending decreases take place. When the federal spending is reduced, and the debt reduced as well, I think we'll reach a new equilibrium and the economy will respond favorably.

Get it, Shut up and HOLD ON........the REAL fight is just beginning. O is NOT going to be a push over and the R's see THIS as THEIR
time to extract "payment" for the tax increase they had to "swallow". JMO

homeagain wrote: Get it, Shut up and HOLD ON........

Let me be the first to predict that the part in bold will not happen...

at all....

with anyone.