Debt Ceiling - clarification

by indophile Fri Jul 29, 2011 2:12 pm

I am lost on the fundamental basis for this debate. The executive branch cannot spend a penny more than what the legislative branch authorizes (Congress hold the purse strings). Does that mean that, say the Congress has authorized excecutive branch to spend $100 without actually having the $100 to begin with? Doesn't then Congress bear the entire responsibility to come up with the funds authorized by itself. Since cutting spending involves going back on promises, isn't the better option raise the revenue to make good on their own word?

by charvaka Fri Jul 29, 2011 2:28 pm

indophile wrote:Does that mean that, say the Congress has authorized excecutive branch to spend $100 without actually having the $100 to begin with?

That is 100% correct. Congress defines both how much money the government takes in taxes, and how much it spends.

indophile wrote:Doesn't then Congress bear the entire responsibility to come up with the funds authorized by itself. Since cutting spending involves going back on promises, isn't the better option raise the revenue to make good on their own word?

Yes. That is why the current debate is so infuriating to me. The GOP basically reduced the government's income and increased its expenses, and kept that up for 8 years. And then they suddenly become concerned about debt.

by Guest Fri Jul 29, 2011 2:39 pm

so in simple words again, whose fault it is that US is n debt ?

are they going to get out of it ever? if not then what does it mean for us?

in very simple terms pls.

tia,

7

by charvaka Fri Jul 29, 2011 2:51 pm

seven wrote:so in simple words again, whose fault it is that US is n debt ?

are they going to get out of it ever? if not then what does it mean for us?

in very simple terms pls.

tia,

7

The US has been in debt throughout most of its history. It will never be out of debt because it doesn't make sense for a country to be debt-less. The current debt level is higher than usual, and that is because of two reasons: (a) fighting the two longest wars in the country's history (Iraq and Afghanistan), and (b) cutting the taxes of ultra-rich people. Both were done by George W Bush when Republicans controlled Congress.

by Guest Fri Jul 29, 2011 3:14 pm

charvaka wrote:
seven wrote:so in simple words again, whose fault it is that US is n debt ?

are they going to get out of it ever? if not then what does it mean for us?

in very simple terms pls.

tia,

7
The US has been in debt throughout most of its history. It will never be out of debt because it doesn't make sense for a country to be debt-less. The current debt level is higher than usual, and that is because of two reasons: (a) fighting the two longest wars in the country's history (Iraq and Afghanistan), and (b) cutting the taxes of ultra-rich people. Both were done by George W Bush when Republicans controlled Congress.

yep, this is how i thought too it happened. bush favoured the rich and now they are in trouble and he is retired! awesome timing!

by Sponsored content

Debt Ceiling - clarification

Debt Ceiling - clarification

Re: Debt Ceiling - clarification

Re: Debt Ceiling - clarification

Re: Debt Ceiling - clarification

Re: Debt Ceiling - clarification

Re: Debt Ceiling - clarification