To Avoid Increasing the Debt Limit, Enact Responsible Policies

Blog Post
Monday, November 15, 2010

Congress has established the maximum amount of debt the government can issue. Unless it is raised, this statutory debt limit of $14.294 trillion will soon be exceeded. At the end of October, debt subject to this limit was just $677 billion short of that figure. To avoid a government default, Congress will need to increase the limit.

That is likely to be controversial on Capitol Hill. However, it is essentially a decision to pay the bills already incurred. Policymakers should rise above partisan gamesmanship and increase the debt limit to avoid a damaging financial crisis. If Congress finds this vote embarrassing, it should enact more responsible fiscal policies before the limit needs to be raised again.

External links:Bureau of the Public DebtThe Debt to the Penny
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