Up To The Limit?
by Scott Bittle
The House voted today to raise the national debt ceiling to $14.3 trillion, but by a pretty close vote on what's usually a routine matter. Opponents said the debt has to be brought under control; supporters pointed out that without an increase in the debt limit, the government would end up defaulting on its debt, throwing the world financial markets into chaos. Again.
So if we can't just stop borrowing cold turkey, how do we get a handle on this? The Committee on the Fiscal Future of the United States concluded you have to start soon, in next year's budget. (In other words, not the one President Obama just submitted for fiscal year 2011, but the budget after that). And the committee argued the goal should be to control the debt at 60 percent of GDP over the next decade – that would keep it from getting too far out of hand while still allowing the government to fight the recession and do the other things it needs to do.