The continuing fight over the debt ceiling
February 20, 2023 | by Bonnie Lyons, MCRP Legislative Committee Chair
Commentary
Arguably the most consequential issue among many consequential issues currently before Congress is the fight regarding raising the debt ceiling. There is no shortage of articles, arguments, and hysteria that warn of the consequences if we do not again agree to allow our federal government to spend more and more, and ever more, of our hard-earned dollars.
You will hear that if we do not go along to get along, we will default on our debt, we will certainly go into a recession, interest rates will spike, the economy will be weakened by slowing demand, the stock market will tumble and, of course, the government will have to shut down and you will miss your Social Security check. That’s all pretty frightening and there is truth in it, amongst the hyperbole.
However, are we to ignore the elephant in the room - that continuing down this road will only take us to Venezuela or some similar bankrupt garden spot? Are we to ignore that it is the previous outrageous spending and money-printing sprees that brought us here in the first place? Will we fail to recognize that the very people demanding that we raise their credit limit have shown no concern whatsoever about the people who pay all the bills?
And how will we ever hope to even slightly change their ways, if we continue to give them their way?
Current debt 20 percent higher than our economy
So far, our new House Speaker, Kevin McCarthy, backed by the actual conservatives in that chamber, has shown some backbone. But the Democrats that run most of this show have refused even to discuss it, claiming that Republicans are endangering the country by insisting on negotiations. The only discussion has been between McCarthy and President Joe Biden, behind closed doors and yielding nothing.
The fact is that our current debt is 20 percent higher than our entire economy. How are we to dig ourselves out of this hole under these circumstances? And yet, it is not enough for them.
Debt and printing money are the actual causes of inflation if Milton Friedman is to be believed. The inflation that shot up by an average of 8 percent over the course of 2022 can only be expected to continue after whatever stabilizing influence we may see from interest rate hikes.
Complicating the need for serious conversations about federal spending is the fact that much of the budget (65 percent) is mandatory spending. President Biden’s budget for FY 2022 totaled $6.011 trillion, eclipsing all other previous budgets. Mandatory spending was budgeted at $4.018 trillion. Discretionary spending was forecast to be $1.688 trillion.
Anything that Republicans negotiate in this fight is a band-aid on a bullet wound. But it is a start and a very important red line in the sand.
For those of us who played by the rules, worked hard, built our nest egg and retired, we can look forward to seeing our money buy less and less, as our government spends more and more. And those of us who are retired continue to ask ourselves, “Will what I have be enough?”
Enough is what I have had in regard to these endless demands to raise the limit on the proverbial credit card. I recommend you put your congressional delegation on speed dial as this fight approaches and don’t let up.
Take Action
Senator John Cornyn
(202) 224-2934
Website
Senator Ted Cruz
(202) 224-5922
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Congressman Morgan Luttrell
(202) 225-4901
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Congressman Dan Crenshaw
(202) 225-6565
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