Should Congress Abolish the Debt Ceiling?
Topics: Economics, Finance, Politics, U.S.
Public Release Date: June 02, 2023
The US has more than $31 trillion in national debt. The debt ceiling — or the most the government can borrow from banks, investors, and foreign countries — has been raised more than 70 times. If the debt ceiling is breached, the federal government will be unable to pay its bills or interests on past debts; cover Social Security checks, payroll for veterans and federal employees; and Medicare reimbursements — leading to default. If that happens, a financial crisis may occur with global implications.
Supporters in favor of abolishing the debt ceiling say it is counterproductive, leads to political drama, and is an economic threat to the country — and the world. Those in opposition argue that while it’s not the best fiscal rule, it’s an effective tool of governance that allows discussion about national spending and keeps lawmakers accountable.
It is in this context that we debate: Should Congress Abolish the Debt Ceiling?
ARGUING YES:
Mark Zandi: Chief economist at Moody’s Analytics
ARGUING NO:
Parker Sheppard: Director for Center of Data Analysis at the Heritage Foundation
MODERATOR-IN-CHIEF:
John Donvan: Emmy award-winning journalist