No More Debt Ceiling Increases: Let the Federal Government Default
Drew Allen | Real Clear Markets | Oct. 11, 2021
Since 1960, the federal government has increased its tax revenue over the previous fiscal year 54 times. Only 7 times has the federal government’s tax revenue decreased over the previous fiscal year. In other words, nine times out of ten, the government gets a raise.
But since 1960, the federal government has spent more than it takes in ten times out of ten. For 61 consecutive years, the national debt has increased over the previous year. Nine times out of ten, the federal government confiscates more of our money each year through taxation, but ten times out of ten, they spend even more than they take.
This isn’t merely irresponsible; it is amoral, it is criminal, and it must stop.
Unfunded liabilities excluded, our current National Debt — the total accumulation of the federal government’s annual budget deficits — is 28 trillion dollars. The current debt ceiling — the maximum amount of debt the federal government allows itself to hold — is 28.5 trillion dollars.
Last Thursday 11 Republican senators, including Mitch McConnell, voted to suspend the debt ceiling until December 3rd, at which time Congress will have to vote again to raise or not to raise the debt ceiling. That means our national debt will soon exceed 28.5 trillion.
In the meantime, the Democratic Party and the media will predictably continue to scream, “The United States has never defaulted on its debt!” As ‘The Hill’ recently pointed out, this isn’t true, but nonetheless we’ll be told that if Congress doesn’t raise the debt ceiling the world will end.