Understanding the Implications of the Debt Ceiling Debate and the Solution Proposed by Mitch McConnell
By With the debt ceiling debate looming, it is important to understand the implications of the current situation. The debt ceiling serves no policy purpose whatsoever and has been used as a political cudgel by Congress since its inception in 1939.[0] The consequences of not raising the debt ceiling could be catastrophic, leading to a situation where the federal government defaults on its obligations, resulting in a dramatic drop in the country’s credit rating and the value of the dollar.[1]
Fortunately, a solution was proposed by Senate Majority Leader Mitch McConnell in 2011. In 2011, President Barack Obama's proposal, which was included in the Budget Control Act, allowed the debt ceiling to be increased, with the potential for Congress to override the decision.[2] Congress could pass a joint resolution of congressional disapproval if they wanted to put an end to it.[2] This allowed Congress to continue to have oversight over raising the debt ceiling but prevented it from being used as a political tool.[3]
The debt ceiling serves no policy purpose, and its weaponization should be avoided at all costs. The debt ceiling must be increased in order to meet the current obligations of the government.[4] If it is not raised before default, it would have a devastating effect not only on the United States economy but on the world economy.[5] This is why it is important to understand the implications of the current situation and the potential solutions available.
0. “Ignore politicians' talk on the debt ceiling.” Axios, 11 Feb. 2023, https://www.axios.com/2023/02/11/why-the-debt-ceiling-drama-is-so-hard-to-gauge
1. “On political fight over debt ceiling [letter] | Letters To The Editor | lancasteronline.com” LNP | LancasterOnline, 12 Feb. 2023, https://lancasteronline.com/opinion/letters_to_editor/on-political-fight-over-debt-ceiling-letter/article_0c39c0b6-a87e-11ed-aa49-efe7650f1a7d.html
2. “Opinion | Jeff Merkley and Tim Kaine: Mitch McConnell's debt-ceiling idea is good” The Washington Post, 14 Feb. 2023, https://www.washingtonpost.com/opinions/2023/02/14/debt-limit-default-mcconnell-plan
3. “Two Democrats want McConnell’s 2011 debt-ceiling fix proposal to be adopted” The Hill, 15 Feb. 2023, https://thehill.com/homenews/senate/3859603-two-democrats-want-mcconnells-2011-debt-ceiling-fix-proposal-to-be-adopted/
4. “Don’t negotiate with debt ceiling” The Gazette, 12 Feb. 2023, https://www.thegazette.com/letters-to-the-editor/dont-negotiate-with-debt-ceiling
5. “Opinion: Congress' debt ceiling debate could be avoided” Detroit Free Press, 14 Feb. 2023, https://www.freep.com/story/opinion/contributors/2023/02/14/congress-debt-ceiling-constitution-politics/69895966007/
