Wednesday, October 9, 2013

David Lightman — Debt Limit? Why Should I Care?

People generally don't understand what it's all about, and a lot don't fear the economic fallout, according to a new United Technologies/National Journal Congressional Connection poll.

Sixty-two percent thought a higher debt limit means allowing more borrowing "for future expenditures," while 28 percent think it's to pay off debts already accumulated--the correct answer.
"With less than 10  days until the nation hits its borrowing limit, the poll found that the misunderstanding was rampant. It was shared by the young and the elderly, the rich and the poor, the college educated and those with only high schools educations," according to a poll analysis.
McclatchyDC
Debt Limit? Why Should I Care?
David Lightman — McClatchy Washington Bureau

2 comments:

Anonymous said...

The highlighted quote seems incorrect to me. I don't think there is any way to limit an increase in the borrowing authorization so that it covers only borrowing for payment of debts already incurred.

Maybe what the author means is that raising the debt ceiling is not itself an authorization for more spending.

Tom Hickey said...

The Treasury pays obligations in order. That's apparently how the payments system works. There are always mounting obligation due to automatic payments that have already been appropriated. The only way to stop future spending and the resulting payment oblitgation is for Congress to not to make further appropriations and to cancel existing obligations other than interest payments on government securities.