In the wake of the recent debt ceiling crisis, we must examine the political maneuvering that has pushed us to the edge of an economic catastrophe. Once again, we found ourselves in a situation where extremist Republicans used the threat of defaulting on our nation’s debt as a bargaining chip, and the consequences are far-reaching.
President Joe Biden’s deal with GOP House Speaker Kevin McCarthy could have been worse, but it’s far from a victory. In the end, there are possible cuts to food stamps for nearly 750,000 people, expedited permits for a gas pipeline that will harm the environment, and cuts to IRS funds meant to catch tax cheats.
All this is simply to ensure that the U.S. government can pay its existing debts between now and January 2025, when the debt limit will have to be renegotiated to avert another catastrophic default. Like the poker game from a nightmare, in every round Republicans consistently go all in, threatening a default to pressure the Democrats into making concessions.
Sign the petition: No more debt limit crises. Fix it for good.
A Flawed System
The debt ceiling is a uniquely American invention most countries don’t have. If spending is legally authorized through the regular budget process, these countries assume necessary funds will be made available through taxes or borrowing.
Denmark is the only other industrialized country with a debt limit, but they set it so high that it never becomes the political football we see here. Australia briefly had a debt limit but repealed it after five years because it became an unnecessary distraction.
The CostsÂ
The recent cuts to food stamps are a prime example of the cost of this political posturing. Furthermore, instead of the savings the GOP envisioned, the changes to food aid in the debt bill will actually cost more money. This is a clear case of ideology trumping practicality, with the most vulnerable among us paying the price.
The expedited permits for a gas pipeline are another worrying concession. This move will harm the environment, and it’s a clear sign that our leaders are willing to sacrifice long-term sustainability and survival for short-term political gains.
Another major concern is the cuts to IRS funds. Those funds were meant to catch wealthy tax cheats and ensure they pay their fair share. By cutting these funds, we’re giving billionaires, those who can most afford to contribute to our society, a free pass. Not to mention that it will blow a hole in the budget deficit rather than save us money.
A Better Way
We need a better way. Budget priorities must be made through the regular process—not behind closed doors as one side threatens fiscal armageddon.
Congress must pass legislation that would either eliminate the debt limit or, like Denmark, set a limit that could likely never be reached. And, of course, Biden must be ready to invoke the 14th Amendment if necessary. After all, as the amendment states: “the validity of the public debt of the United States … shall not be questioned.Â
Congress must eliminate or raise the debt limit to an amount the Treasury would never conceivably hit. Doing so would prevent future threats of default and offer families the certainty that the services they depend on will not be held hostage.
We must pass comprehensive reform to prevent a future debt limit crisis.
