From Debt Ceiling Crisis to Debt Crisis

Romina BocciaThe U.S. government teeters on the brink of defaulting on its payment obligations over the next few weeks as the debt limit threatens to bind in early June. There ’s been extensivecoverage about the potential for catastrophic impacts on the economy if Congress and the President do not raise the debt ceiling. What ’s missing from the debate is serious consideration of the potentially catastrophic longer‐​term scenario the United States could face if spending and debt continue growing unabated.Current debt limit discussions are indicative of the myopia that characterizes the federal budget process. A  debt limit crisis presents a short‐​term legislative impasse of politicians’ own making. There’s an easy and certain way out of the immediate problem: increase the debt limit. A full‐​fledged fiscal crisis, however, is a much more uncertain, longer‐​term, and yet far more damagi ng scenario with no easy way out. And it becomes much more likely if legislators continue borrowing like there is no tomorrow.The relevant question isn ’t whether to raise the debt ceiling. Instead, the debt ceiling deadline should serve as an action‐​forcing event during which lawmakers halt the unsustainable growth in the debt.As someone who cares deeply about the future of the United States and the well ‐​being of current and future generations, I am frustrated by the misguided focus on short‐​term political considerations at the debt limit. Meanwh...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs