Two Things to Understand about Debt Limit Hysteria

by Dan Mitchell | Jul 16, 2019 | Blogs, Economics

One of the few theoretical constraints on Washington is that politicians periodically have to raise a “debt ceiling” or “debt limit” in order to finance additional spending with additional red ink. I have mixed feelings about this requirement. I like that there is...

Make-Believe Debt Limit Hysteria from the Political Establishment

by Dan Mitchell | Oct 6, 2013 | Blogs, Economics

It appears that the government shutdown, which technically is a battle over annual appropriations legislation for so-called discretionary spending, is going to drag on for a while. The Obama Administration has shown zero willingness to negotiate, even though...

If Raising the Debt Ceiling and Issuing More Debt Was the Way To Preserve America’s Credit Rating, that Means…

by Dan Mitchell | Aug 20, 2011 | Blogs, Uncategorized

…Well, I’m not sure what it means. But it sure doesn’t make sense when you look at the big picture. A credit card company wouldn’t increase a deadbeat’s credit limit, so why is it a sign of fiscal prudence to give Uncle Sam more borrowing authority? That being said, I...

Spending Is Nuts, the Debt Deal’s a Joke, and Some Big Fights Remain

by Dan Mitchell | Aug 2, 2011 | Big Government, Blogs, Government Spending

Here’s the video that won the lucrative Powerline prize. Perhaps not as catchy as the entry I posted a couple of days ago, but very well done, with a proper focus on excessive government. And here’s a video just released by Cato on why the debt deal – at best – is a...

Where Are the Spending Cuts?

by Dan Mitchell | Aug 1, 2011 | Big Government, Blogs, Government Spending

Considering the Democrats control the Senate and the White House, I actually think the Republican leadership did a decent job in the debt negotiations. Of course, I had low expectations, but did anybody expect miracles with Obama in the White House? As you might...