EconoMeter: Should U.S. dump debt ceiling?
With Denmark the only other major industrial nation with official cap on what it owes
Roger Showley, SAN DIEGO UNION-TRIBUNE
Sunday, July 31, 2011
Kelly Cunningham, National University System
Clearly the debt limit is not effective since it can be raised at anytime, albeit with much drama and fanfare. It appears to only be a speed bump along the federal government’s road of ever increasing spending. The debt ceiling does not deter politicians or the president from stopping spending, especially as spending is first obligated and higher debt easily allowed by simply raising it with a vote. If we had a balanced budget amendment as a percentage of GDP, the debt limit would not be needed as revenues would equal expenses and no more borrowing needed