• [ network ]
  • goatmatrix.net
  • gvid.tv
  • img.gvid.tv
  • games.gvid.tv
  • apps.gvid.tv
HomeUploadUpload DirectHotlinkRandomAbouttheme toggle
Expand

3 Reasons Why The Debt-Ceiling Debate is Full of Malarkey

Views:1101
@ReasonVids

All anybody in Washington can talk about these days is the debt limit or debt ceiling -- the total amount of money the federal government is authorized to borrow at any given time. After a decade in which spending increased by more than 60 percent in inflation-adjusted dollars and the debt limit was raised no fewer than 10 times, the government is about to max out its $14.3 trillion credit line, leading to fears that Washington is going to default on its bonds, stop cutting Social Security checks, and destroy the economy more than it already has.

But the current debate over the debt ceiling is full of malarkey for at least three reasons.

  1. August 2 is a phony deadline. Treasury Secretary Timothy Geithner has pushed back the drop-dead date when the U.S. finally reaches its limit a bunch of times already: March 31, April 15, May 31 were all cited as deadlines before August 2 was inked in as Armageddon. But this time, he means it, man, really.


  1. Reaching the debt limit is not the same as defaulting on our debt -- which would indeed be catastrophic.


Think about it: You can max out your credit cards but as long as you keep paying the minimum amount due each month, your creditors don't go crazy. Interest on the debt is a small fraction of total outlays and the government has a series of tools -- from using cash on hand to selling assets to scrimping on nonessential payments -- to make sure interest payments are made and seniors aren't put on an all cat-food diet.

  1. Legislating-by-Panic is no way to run a country. The reason we're in this mess is because government can't stop spending. And the government can't even pass a budget on a year's notice. But we're expecting them to come up with a good plan for the country's borrowing in a couple of weeks? Trying to force through an expansion of the country's credit line by promising cuts in spending down the road is exactly why we're in this situation to begin with.


It makes far more sense to do something like sell some TARP assets -- the government is sitting on $320 billion in outstanding direct loans and equities investments -- to cover interest payments through the end of the fiscal year then force Congress and the president to come up with a budget that cuts spending -- and borrowing -- for real, next year, not is some distant future.

For more information, check out Nick Gillespie's 5 Uncomfortable Facts About the Wonderful, Horrible Debt-Limit Debate: http://reason.com/archives/2011/07/08/five-uncomfortable-facts-about

And Mercatus Center's Jason J. Fichtner & Veronique de Rugy's The Debt Ceiling: What is at Stake: http://mercatus.org/sites/default/files/publication/Debt%20Ceilling.deRugy.Fichtner.4.28.11.pdf

About 2.35 minutes.

Produced by Nick Gillespie and Meredith Bragg, edited by Joshua Swain.

Go to Reason.tv for downloadable versions, and subscribe to Reason.tv's YouTube Channel to receive automatic notifications when new material goes live.

nick
,
gillespie
,
libertarian
,
reason.tv
,
reason
,
foundation
,
three
,
reasons
,
debt
,
ceiling
,
timothy
,
geithner
,
august
,
2nd
,
default
,
limit
,
washington
,
obama
,
republicans
,
budget
,
meeting
,
gop
,
federal
,
spending
,
taxes
,
tax
,
tarp
,
assets
,
panic
,
legislating
,
economy
,
recession
,
credit
,
cards
    Thumbnail for Carmageddon or Lameageddon? Billion Dollar Project Isn't Apocalyptic After All3:31
    Carmageddon or Lameageddon? Billion Dollar Project Isn't Apocalyptic After All
    ReasonVids
    1029 views
    Thumbnail for Nanny of the Month (Feb 2011): Would-Be Brothel Banner Sen. Harry Reid!1:31
    Nanny of the Month (Feb 2011): Would-Be Brothel Banner Sen. Harry Reid!
    ReasonVids
    914 views
    Thumbnail for Physicist explains Large Hadron Collider discoveries | Lisa Randall and Lex Fridman | Lex Clips8:25
    Physicist explains Large Hadron Collider discoveries | Lisa Randall and Lex Fridman | Lex Clips
    invidious
    408 views
    Thumbnail for Who can Relate? Nostalgia 35 | Adhemz0:20
    Who can Relate? Nostalgia 35 | Adhemz
    invidious
    90 views
    Thumbnail for Dead Rising 2: Off the Record - Walkthrough Part 4 - Punching Dummies (Gameplay & Commentary) | theRadBrad14:02
    Dead Rising 2: Off the Record - Walkthrough Part 4 - Punching Dummies (Gameplay & Commentary) | theRadBrad
    invidious
    402 views
    Thumbnail for valentine's day!! princess polly haul | toomuchzozo19:22
    valentine's day!! princess polly haul | toomuchzozo
    invidious
    437 views
    Thumbnail for Millennials Hate the Nanny State: Results from the Reason-Rupe Poll1:59
    Millennials Hate the Nanny State: Results from the Reason-Rupe Poll
    ReasonVids
    1117 views
    Thumbnail for Scientific Evidence That Disproves the Consensus Theory on the Origin of Cancer | Talking Cancer With Professor Thomas Seyfried 10:32
    Scientific Evidence That Disproves the Consensus Theory on the Origin of Cancer | Talking Cancer With Professor Thomas Seyfried
    invidious
    115 views
    Thumbnail for The Mystery Of The Sodder Children 😧 | Zack D. Films0:42
    The Mystery Of The Sodder Children 😧 | Zack D. Films
    invidious
    185 views
    Thumbnail for Rand-O-Rama: The Long Shelf Life of Ayn Rand's Legacy3:51
    Rand-O-Rama: The Long Shelf Life of Ayn Rand's Legacy
    ReasonVids
    1059 views
    Thumbnail for 3 More Reasons to Fear the IRS1:32
    3 More Reasons to Fear the IRS
    ReasonVids
    937 views
    Thumbnail for How To Combine Video Game Genres | Game Maker's Toolkit13:11
    How To Combine Video Game Genres | Game Maker's Toolkit
    invidious
    436 views
    Thumbnail for Chicken and Chorizo POPTART #shorts #asmr | Owen Han0:35
    Chicken and Chorizo POPTART #shorts #asmr | Owen Han
    invidious
    268 views
    Thumbnail for What Afghans Think About Bergdahl, the Taliban, and U.S. Intervention: Q&A with Author Anand Gopal6:10
    What Afghans Think About Bergdahl, the Taliban, and U.S. Intervention: Q&A with Author Anand Gopal
    ReasonVids
    906 views
    Thumbnail for FLASHBACK: How Do I Find Broken Links? (2021)24:55
    FLASHBACK: How Do I Find Broken Links? (2021)
    corbettreport_uo
    742 views
    Thumbnail for 【パチスロ生配信】東京都クリエ府中西原店で朝からやっと緑どん!ロケットかますぜ!PACHINKO SLOT生放送パチンコパチスロ実戦!5/17 | やっちゃんの崖っぷちスロパチ生活4:54:16
    【パチスロ生配信】東京都クリエ府中西原店で朝からやっと緑どん!ロケットかますぜ!PACHINKO SLOT生放送パチンコパチスロ実戦!5/17 | やっちゃんの崖っぷちスロパチ生活
    invidious
    131 views
    Thumbnail for The FBI Basically Admits they Orchestrated January 6th for Political Gain and to Use Against Trump.11:04
    The FBI Basically Admits they Orchestrated January 6th for Political Gain and to Use Against Trump.
    bestofsaidit
    1760 views
    Thumbnail for Robot Chicken Funny Moments | Boba Fett16:49
    Robot Chicken Funny Moments | Boba Fett
    invidious
    200 views
    Thumbnail for Funniest Animals On The Internet! | Beast Reacts9:02
    Funniest Animals On The Internet! | Beast Reacts
    invidious
    526 views
    Thumbnail for রাকিব অন্তরার 2 Years Anniversary 😍 #Shorts | Nusrat Jahan Ontora0:16
    রাকিব অন্তরার 2 Years Anniversary 😍 #Shorts | Nusrat Jahan Ontora
    invidious
    257 views
    Thumbnail for SİBER SALDIRISI YASASI GELDİ, TÜM VERİLERİMİZ YİNE ÇALINDI ! | Özlem Gürses1:07:34
    SİBER SALDIRISI YASASI GELDİ, TÜM VERİLERİMİZ YİNE ÇALINDI ! | Özlem Gürses
    invidious
    165 views
    Thumbnail for Is California Over?3:07
    Is California Over?
    ReasonVids
    985 views
    Thumbnail for Former U.S. Comptroller General David Walker on The Federal Fiscal Crisis9:54
    Former U.S. Comptroller General David Walker on The Federal Fiscal Crisis
    ReasonVids
    928 views
    Thumbnail for Remy: Fed Asst'd Printing (WAP Parody)1:41
    Remy: Fed Asst'd Printing (WAP Parody)
    ReasonVids
    941 views

points

Permalink
Reply
nick
,
gillespie
,
libertarian
,
reason.tv
,
reason
,
foundation
,
three
,
reasons
,
debt
,
ceiling
,
timothy
,
geithner
,
august
,
2nd
,
default
,
limit
,
washington
,
obama
,
republicans
,
budget
,
meeting
,
gop
,
federal
,
spending
,
taxes
,
tax
,
tarp
,
assets
,
panic
,
legislating
,
economy
,
recession
,
credit
,
cards
TOS  •  Add Keywords  •  Donate  •   Analytics  •   DMCA  •   Puzzle