Mission Accomplished

Our budget deficit is shrinking--from such high levels that nobody should be gloating about that "achievement"--and so according to the president's defenders that means we shouldn't debate our debt ceiling. Indeed, our Secretary of Treasury said that merely having the debate harmed our economy.

Silly me, I thought we had a debt ceiling in order to force a debate on it. If not, why have a debt ceiling in the first place? Am I missing something?

Sure, the history of the debt limit is one long retreat from Congressional authority over borrowing in favor of letting the White House take care of it--more effectively. But does this mean Congress must always surrender more authority by automatically increasing the debt limit?

I'd also like to point out that refusing to raise the debt limit doesn't mean we default on our debt. Refusing to allocate our revenues to repaying that debt defaults on the debt. Otherwise, you're saying that the only way to repay money we borrow is to borrow more money.

That's a subtle difference, I know. If you doubt me, max out your credit card, call your bank to request an increase in the limit, and if they refuse tell them that their decision means you can't repay your debt to them.

On the one hand, you could say that if Congress wanted to limit borrowing they could simply not authorize spending above revenue, which then requires the executive branch to borrow money. But that clearly doesn't happen.

So something should stand in the way of the national credit card. Couldn't we set some percent of GDP as our limit? Say, 110% to keep us above the current debt. Then reduce that every year by 5 percentage points--unless legislation is passed and signed into law to suspend it for a year or by the president alone in pre-defined emergencies--until we get to 70%--which is just about what our debt was at the end of 2008. I'd suggest 55%, just about what it was at the end of the Clinton administration, but I'll not push my luck.

Or pick some number other than 5 for the reduction in percentage points.

Given how eager everyone is in Washington to spend, maybe encouraging economic growth would be the result as the federal government tries to maximize the GDP denominator so the debt numerator gets larger.

Anyway, you know who never debated their debt ceiling? Detroit. But hey, at least they never harmed their economy by having that debate.