What Benefit (If, Any) Is There To A Debt – Limit?: 4 Key Considerations

Since, we so – often, witness a political battle, about the need to raise the so – called, debt – limit, many assume this is some sort of Constitutional requirement! However, it was never, either, considered, or expressed, in this, supposedly, guiding document! Too often, it becomes, a partisan, political way, of trying to convince some voters, elected officials (Senators, and Congressional Representatives/ Congressmen), are handling their financial, and fiscal responsibilities, in a meaningful, greater good, focus! Therefore, it is essential, to realize, and understand, raising the debt – ceiling, is generally required, not because of current actions/ policies, etc, but, by the deficits, created, in the past! The last time, this nation has a positive budget, for a year, was, during the administration, of President Bill Clinton, and the only President, before, or since, who articulated a message, stating, this nation, needed to create, more relevant budgets, etc, was President Jimmy Carter, who suggested, strongly, we needed to use, zero – based – budgeting, to achieve this ideal! With, that in mind, this article will, briefly, consider 4 key considerations, regarding, this issue.

1. Theoretical – as a goal: Perhaps, when the debt – ceiling, and/ or, limit, was first used, it was to create, more responsible public leaders, in terms of spending, etc, the reality is, at – best, today, it appears to be, little more than, a theoretical, exercise, and a political diversion. Although, there seems to be little doubt, more responsible spending, is needed, and necessary, this approach, has provided, little, relevant service, to the public, in that regard! At – present, the leaders of the Republican Party, seem to be demonstrating, the invalidity, of this process, as well as the hypocrisy, of politicians, who are refusing to support this current need, although, it is largely, predominantly – due, to past debts, the largest component, of which,was the, over $7 trillion deficit, during the Trump administration, which these individuals, continuously, supported, and voted for!

2. Eliminate it?: Some suggest, it is well – past – time, to eliminate this debt ceiling, approach, because, it serves little, positive, productive purpose! Is that the best approach, or would it be better, to maintain, a spending – control, but, to do so, in a less – political way?

3. Make it adjust, automatically: Some claim, it should, adjust, automatically, based on previously – approved, expenditures, in order to eliminate, the amount of wasted time, and energy, on manually, doing so! However, if this approach, becomes the rule/ guideline, we would need, to create a way, where expenditures, and budgeting, became more responsible, responsive, relevant, and sustainable!

4. Explain it to the public: At the very – least, we must demand, the public learns, what this process, is all – about! The way, it now exists, seems to be assisting, the tendency, to pass – the – buck, and blame present leaders, for the actions of their predecessors!

Wake up, America, and demand, fuller – disclosure, better governing, and a more – intelligent, productive, fiscal policy, and process! Will you become a more knowledgable voter?