The U.S. Debt Limit Constrains Nothing But Honesty
There’s a bipartisan tradition of pretending that the ceiling inhibits irresponsible taxing and spending. It’s really just a stage set for bipartisan balderdash.
Responsibility-free zone.
Photographer: Sarah Silbiger/BloombergJohn Thune of South Dakota, the second-ranking Senate Republican, says that “the debt limit needs to be increased.” He also says Republicans are not going to vote for it. He thinks the Democrats can and should do it on their own. This stance makes political sense, but no other kind, which suggests that the debt limit should be repealed.
The conventional view, which Thune clearly accepts, is that failing to raise the debt limit would cause the federal government to default on its obligations in short order, with large economic costs. Without the increase, money to pay the government’s bills could run out in October.