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The Truth About the Debt Limit Fight: The debt is now larger than the entire country's annual output. The longer we wait to begin fixing it, the worse the pain is likely to be.
Townhall ^ | 02/03/2023 | Neil Patel

Posted on 02/03/2023 7:24:37 AM PST by SeekAndFind

As with so many of our national debates, the truth about the current debt limit fight is not just different from the narrative set forth by the corporate media; it's the opposite. The media narrative, to recap, is that the debt limit can and should be increased as a matter of course. Anything that veers from this automatic debt limit increase, the story goes, is just flat-out irresponsible. This narrative is being pushed not just in the media, but by Wall Street, corporate America, the Democrats in Congress, and even some Republicans. That's not surprising since those groups are increasingly allied. Unfortunately, since this issue is so much more important than most, this narrative is not just wrong but flat-out dangerous.

Wall Street and corporate America are concerned, more than anything else, with next quarter's profits. This focus is so strong that anything that endangers next quarter?s profits, like a fight over America's debt crisis, have to be avoided at all costs. This sort of short-sighted financial thinking is usually derided by those who should know better. Thinking only about the next financial quarter can result in some seriously horrible outcomes further down the road. But the alignment between corporate America, the corporate media, and the Democratic Party has grown so strong that there is virtually no dissent. The result is near unanimity across the country that a clean debt limit increase must happen and those in the way are irresponsibly endangering the country's financial security.

The truth is that America is running straight into a debt crisis. Oddly, the voices who were warning of this impending catastrophe back when America had a $10 trillion national debt are now largely silent, even as America has surpassed a $30 trillion national debt. It's as if the problem has grown so big that even all the wise men have given up. The silence is eerie. It's as if America is in a national suicide pact. A national crisis is approaching, but nobody can even mention it anymore. It's gotten so bad that those now raising this very real issue are derided as debt alarmists.?

The reality is America does need a debt alarm. The debt is now larger than the entire country's annual output. The obligations for Social Security and Medicare are growing. The interest payments on the debt are crowding out other priorities. It's no longer the situation that we had until recently, where the debt is just owed back to the U.S. Treasury. A huge chunk of the debt is now foreign-owned. America's bills are coming due. Fixing this will be painful. The longer we wait to begin fixing it, the worse the pain is likely to be.

Given this reality, it would be flat-out irresponsible for leaders who understand the gravity of this issue to not use the debt limit increase as some leverage to both draw attention to the situation and hopefully begin to address it. Responsible members of Congress know this.

The vast majority of Democrats? preferred answer to the nation's looming debt crisis is to ignore it. They have even developed wild theories to explain it away. Most Republicans know better, but they are conflicted. First, the corporate world that dominates Washington is not focused on the issue and is instead hyper-focused on the near-term economic damage that a debt limit fight may endanger. Second, many Republicans view the imperative of defense spending, and currently of Ukraine military aid, as dwarfing the longer-term debt concerns. Finally, Republicans have been so hypocritical on the debt issue that it's now politically difficult to take a stand on principle.

Most Republicans were silent as the federal debt exploded under George W. Bush. Republicans then screamed about the debt as it exploded even more under Barack Obama. Then they fell silent once again as it exploded to record levels under Donald Trump. Now, as Joe Biden continues the irresponsible fiscal policies of his predecessors, it's politically difficult for Republicans to once again preach about fiscal restraint without looking like complete partisan hypocrites. It's a tough position to be in. Yet none of this changes the fact that addressing the debt is the right thing to do.

In politics, doing the right thing is not always rewarded. With all the hypocrisy, posturing, and even lying across party lines, a political reward for those willing to push hard on debt reform is not a sure thing. It's therefore vitally important that the small band of Republicans pushing the issue the hardest be reasonable and smart about their goals.

What the debt issue needs more than anything today is principled leadership. This means not doing what's most popular, but leading the American people toward what's right for the country. This sort of leadership is, to understate things, in short supply in America. This is an opportunity to exert it. Many Americans are yearning for just that. Saddling our children and grandchildren with a debt-ridden and weaker country is fundamentally un-American. People know that deep down. They just need to be reminded. Pulling that off would be a win in itself. Smartly handling this moment is a huge opportunity for anyone capable.


Neil Patel co-founded The Daily Caller, one of America's fastest-growing online news outlets, which regularly breaks news and distributes it to over 15 million monthly readers. Patel also co-founded The Daily Caller News Foundation, a nonprofit news company that trains journalists, produces fact-checks, and conducts longer-term investigative reporting. The Daily Caller News Foundation licenses its content free of charge to over 300 news outlets, reaching potentially hundreds of millions of people per month


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: debtlimit; spending

1 posted on 02/03/2023 7:24:37 AM PST by SeekAndFind
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To: SeekAndFind

There is no incentive for politicians to curb spending. When the SHTF they’ll be either golfing in Florida with millions in the bank or gone.

There needs to be a Federal balanced budget amendment. They need handcuffs.


2 posted on 02/03/2023 7:26:37 AM PST by 1Old Pro
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To: 1Old Pro
Tell y'what . . .

Let's all meet at the Green Dragon . . . . eh ?


History

The property had been inherited by Mehitable (Minot) Cooper from her uncle, William Stoughton, in 1701; Stoughton himself had acquired the property some time before June 1676.

[4] Douglas lived in the tavern, calling it his "mansion house".[4] After his death in 1752, the tavern passed to his sister, who sold it to the St. Andrews Lodge of Freemasons in 1766.

[3] The Masons used the first floor for their meeting rooms led by Grand Master of the Grand Lodge of Massachusetts, Joseph Warren (killed at Bunker Hill), followed by Grand Master John Hancock.

The basement tavern was used by several secret groups and became known by historians as the "Headquarters of the Revolution".

The Sons of Liberty led by Samuel Adams, Boston Committee of Correspondence and the Boston Caucus each met there. Though membership in the Sons of Liberty was secret, it is widely believed to have included Samuel Adams, Dr. Joseph Warren, Paul Revere, John Hancock, James Otis, and Benjamin Edes (owner of the influential Boston Gazette).

The Boston Tea Party was planned there and Paul Revere (a Mason) was sent from there to Lexington on his famous ride.

In January 1788, a meeting of the mechanics and artisans of Boston passed a series of resolutions urging the importance of adopting the Federal Constitution pending at the time before a convention of delegates from around Massachusetts.

The building was demolished in 1832.

[5] A warehouse was subsequently built in its place.[2] On August 19, 1892, a commemorative plaque was placed:[5]

3 posted on 02/03/2023 7:29:26 AM PST by knarf (I say things that are true . . . I have no proof, but they're true.)
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To: SeekAndFind

USLESS MESSAGE. Doesn’t point to he problem at all.

The problem: THE $3+ TRILLION UNCONSTITUTIONAL PORTION OF THE FEDERAL GOVERMENT WHUCH MUST BE DISMANTELED IF WE ARE TO RECOVER OUR FREE CONSTITUTIONAL REPUBLIC.

...and OBTW, the debt problem (and tax problem) would dissolve before our eyes...

In the meantime, don’t let the Left raise taxes. High taxes is much more destructive than high debt.


4 posted on 02/03/2023 7:31:47 AM PST by Jim W N (MAGA by restoring the Gospel of the Grace of Christ (Jude 3) and our Free Constitutional Republic!)
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To: SeekAndFind

Fixing it? Ha Ha Ha Ha! Thats funny.


5 posted on 02/03/2023 7:32:35 AM PST by griffin (When you have to shoot, SHOOT; don't talk. -Tuco)
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To: 1Old Pro

You are correct—they need strong incentives.

How about this:

Once a year there is a lottery drawn for all 435 Congress-critters and 100 Senators.

The “winning number” gets a public execution once a year—until the federal debt (not annual deficit—total debt) is zero!


6 posted on 02/03/2023 7:33:06 AM PST by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
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To: 1Old Pro
There is no incentive for politicians to curb spending.

There is every incentive for politicians to spend out of control. "We the People", even "conservatives" on this forum, are addicted to socialism and DEMAND that the out of control spending continue.

7 posted on 02/03/2023 7:34:41 AM PST by NorthMountain (... the right of the peopIe to keep and bear arms shall not be infringed)
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To: SeekAndFind

Whan, whan, whan, I’ve heard this my whole life!

DOOMSDAY! OMG! We are all gonna DIE!

Debt/Deficit each American owes $,$$$,$$$,$$$,$$$,$$$,$$$,$$$,$$$,$$$.

The sky is falling, the sky is falling.

SHEESH!


8 posted on 02/03/2023 7:34:53 AM PST by faucetman (Just the facts, ma'am, Just the facts )
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To: SeekAndFind

it will never be paid back


9 posted on 02/03/2023 7:36:56 AM PST by aMorePerfectUnion (Fraud vitiates everything. )
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To: SeekAndFind

It is up to citizens who understand the entitlements system to explain to the rest why it is that the growth of social security benefits and the growth of medicare expenditures need to be slowed.

Given that even on FreeRepublic it is a tiny minority who are remotely willing to entertain a prospective reduction in their future benefits by one or two dollars a month, I despair at the prospect of explaining it to Al Sharpton or Ilhan Omar.


10 posted on 02/03/2023 7:39:01 AM PST by babble-on
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To: SeekAndFind

It’ll get fixed right after every demonrat is a gazillionaire.


11 posted on 02/03/2023 7:39:45 AM PST by bgill
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To: knarf

12 posted on 02/03/2023 7:44:10 AM PST by knarf (I say things that are true . . . I have no proof, but they're true.)
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To: 1Old Pro

Conservatives should constantly remind young people that they will have to pay off the debt or at least pay the carrying costs of the debt, and that Biden cannot forgive the national debt.


13 posted on 02/03/2023 8:06:50 AM PST by ActresponsiblyinVA
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To: ActresponsiblyinVA

Yep, they should do that and more.


14 posted on 02/03/2023 8:07:37 AM PST by 1Old Pro
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To: SeekAndFind

There’s no fixing it. Every elected politician knows good and well the debt cannot be repaid. Its going to have to default into a new system.


15 posted on 02/03/2023 8:42:47 AM PST by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped)
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To: faucetman

The national debt is not a problem...

Until it is.

This is classic chaos theory in action.


16 posted on 02/03/2023 8:44:13 AM PST by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
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To: 1Old Pro

“this issue is so much more important than most, this narrative is not just wrong but flat-out dangerous.”

Might be worse than that. The powerful people might actually gain by our over-indebtedness. Also, voters must not be pressuring their representatives to reduce spending. Is that because a lot of them are getting government handouts.


17 posted on 02/03/2023 9:16:54 AM PST by cymbeline
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To: SeekAndFind

.


18 posted on 02/03/2023 10:09:00 AM PST by sauropod (“If they don’t believe our lies, well, that’s just conspiracy theorist stuff, there.”)
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To: 1Old Pro

<>They need handcuffs.<>

Yes.

Start with repeal of the 17th Amendment. It might not be too late.


19 posted on 02/03/2023 3:51:59 PM PST by Jacquerie (ArticleVBlog.com)
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