Actually, I think you’re right and the House should just pass on increasing the debt ceiling. However, there’s another wrinkle I’d like to introduce that makes it an even more attractive option.
Right now, legislators are scared because they think the failure to increase the debt ceiling will require too large a cut in federal spending. (Cutting $140 bn in August from a $310 bn budget is a 45% cut, and frankly, that is completely impractical. Way more people will get hurt than necessary, and Republicans will suffer dearly for forcing that situation.)
However, if the Social Security and Medicare Trust Funds are used to pay the $100 bn in SS/Medicare expenses each month, the remaining deficit falls to $40 billion of $210 other expenses, or less than 20%. And I can imagine cutting 20-50% out of a bunch of “other” federal programs for the duration of Obama’s presidency. The $40 bn a month rate would pile up $600 bn in budget cuts by November 2012, and we’d get there by just voting no to the debt ceiling increase.
This would work, so I hope someone in DC is at least considering it.
NO debt ceiling increase - cut spending. The American economy, which is driven by private enterprises, not the government, will welcome the change. There will be troubles in the short term, in the longer term, we will be so much better off.
Raise the debt ceiling now - the patient (economy) will suffer even more later as the disease (debt) overwhelms the patient. This should have been done several years ago and we would not be in the mess we are today.
I will not ever vote for any Congressman that approves this increase.