Over time, the debt ceiling has been raised whenever the United States comes close to hitting the limit. By hitting the limit and missing an interest payment to bondholders, the United States would be in default, lowering its credit rating and increasing the cost of its debt. There has been controversy over whether the debt ceiling is constitutional. According to the 14th Amendment of the Constitution, "The validity of the public debt of the United States, authorized by law ... shall not be questioned." The majority of democratic countries do not have a debt ceiling, with the United States being one of the exceptions. The debt ceiling is raised to pay for monies congress has already approved and the money has already been spent. There has never been a time in our history where the debt ceiling has not been raised when requested by a president. Clinton said that if he were still president, he would use the 14th Amendment which many think makes the concept of debt ceilings unconstitutional to bypass Congress. President Obama, a former professor of constitutional law, has so far resisted that option. Given the recent reluctance of the more conservative wing of the GOP to raise the ceiling, and the general GOP resistance to raising taxes, you may be surprised to learn that over the years Republican presidents have raised the debt ceiling more times than Democratic presidents. President Reagan raised the debt ceiling more times than any other President since 1960. He raised it 18 times, for a 67% increase. President Obama “doesn’t even compare” to Reagan’s record, he has raised the debt ceiling 6 times, for a 31% increase. Ronald Reagan “proved deficits don’t matter”, according to former Republican V.P. Dick Cheney. How did he do that? By driving up the deficit. Under Reagan, the deficit skyrocketed. Reagan was in office from January 20, 1981 – January 20, 1989.
Posted on: Fri, 04 Oct 2013 03:40:20 +0000
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