If you think that the debt limit is an important concept for limiting deficit spending, why do you think that it should always be increased?
Because it’s a redundant constraint. The budget already limits the debt, and that is the best mechanism for limiting it—it can actually take effect safely. The debt limit is a guillotine. If it ever does anything directly, we are screwed.
Because it’s a redundant constraint. The budget already limits the debt, and that is the best mechanism for limiting it—it can actually take effect safely. The debt limit is a guillotine. If it ever does anything directly, we are screwed.
Because it’s a redundant constraint. The budget already limits the debt, and that is the best mechanism for limiting it—it can actually take effect safely. The debt limit is a guillotine. If it ever does anything directly, we are screwed.
It’s not a constraint—it’s a precommitment / beeminder-like device. It’s purpose (at least nowadays) is to make borrowing more politically painful.
Then why shouldn’t we get rid of the guillotine?
A few posts up:
As far as I can tell, no reason at all.