![]() Further, if taxes were raised enough and spending cut enough, the existing U.S. The ceiling would become irrelevant or merely symbolic. It is elementary economics to note that if Congress raised more taxes or cut federal spending-or both-there would be no need to borrow and thus no ceiling on borrowing to worry about. A highly political ritual of threats and counterthreats accompanied each rise of the ceiling required by the need to borrow to finance deficits. The borrowings accumulated to hit successive ceilings. Those excesses required borrowing to cover them. Congress so managed its taxing and spending that it created ever more excesses of spending over tax revenues (deficits). Ceilings were intended to limit the amount of federal borrowing. ![]() Congress has imposed successive ceilings on the national debt, each one higher than the last. That otherwise reasonable people would be so readily deceived raises the question that will provoke those historians: How could this happen? Share on WhatsApp Share on Facebook Share on Twitter Share on Telegram Share on Reddit Share on Emailįuture historians will likely look back at the debt ceiling rituals being reenacted these days with a frustrated shaking of their heads. ![]()
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