The Debt Ceiling System

A 100+ years old system. A system created by the Legislative Branch to prevent the constant need to debate about borrowing money to meet the government's ever-growing obligations. Arguing about anything in Congress appears to be a great inconvenience and must be kept to a minimum. This system provides for that, and it ties the hands of subsequent congresses because you don't want to be the one blamed for a government shutdown.

What causes the credit limit to be raised time after time? From what I can discern, the never-ending and ever-growing programs; the huge bureaucracies that administer the programs; the increasing national debt and Congress's lack of action to bring it under control; government bonds and other securities coming to maturity; foreign aid; useless, wasteful budget items.

We can take several options to deal with the Debt Ceiling.

Raise the government credit limit to accommodate future borrowing for those upcoming programs and policies that will need to be funded. Of course, this is the current "modus operandi", which will put us in the poorhouse.

Another option is to take several steps to keep the Debt Ceiling in check, such as: actual cuts across all programs except for Social Security and Medicare; remove or modify any regulations that impede free commerce so that the GDP can grow; stop creating programs; replace the 16th amendment with a national sales tax on new goods and services, which will, among many other benefits, allow corporations to repatriate millions and enable the economy to grow by bringing back jobs that have left our economy a long time ago.

We can also not raise the Debt Ceiling, but this would be a little harsh and a little painful at first but eventually normalize the budget to be balanced and responsive to the country's needs. Not increasing the credit limit would not mean the end of the word. It just means that the government will not be legally authorized to borrow money, but revenue is constantly flowing into the Treasury Department daily. Congress has to prioritize those budget items that are critical and essential to the people and the government, such as Social Security, Medicare, and the military. This option would be a de facto balanced budget amendment.

Let me know your thoughts about the Debt Ceiling, which of these options would work best for the people, and your suggestions to stop this vicious cycle of indebtedness and financial spiral to ruin.


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