Five Reasons Why Not To Increase the Debt Ceiling

Five Reasons Why Not To Increase the Debt Ceiling

1. We won't default if we prioritize our spending.

The federal government takes in enough revenue to cover our debt obligations. The real problem is the spending. We must act now to control our spending for the sake of America's future.

"The fact that we are here today to debate raising America's debt limit is a sign of leadership failure. It is a sign that the U.S. Government can't pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government's reckless fiscal policies." - Senator Barack Obama, March 16, 2006*

2. If they raise it they will spend it.

Since the debt ceiling was first put into place, Congress has not failed to raise it when the debt was critically close to reaching and exceeding the limit. The debt ceiling has been raised 10 times in the last 11 years and we are on the verge of raising it yet again. What makes this time any different? What is to stop them from raising it the next time we reach the limit? Isn't that the point of the debt ceiling, to prevent the borrowing of more money?

"If Washington were serious about honest tax relief in this country, we would see an effort to reduce our national debt by returning to responsible fiscal policies. But we are not doing that..." - Senator Barack Obama, March 16, 2006*

3. We have been warned to stop the reckless spending.

Moody's, Standard & Poor's, economists, and even China have warned us to stop our reckless spending. Increasing the debt ceiling is an enabler to our spending problem. If the government is not able to borrow anymore money, they will be forced to start prioritizing spending.

"[T]he more we depend on foreign nations to lend us money, the more our economic security is tied to the whims of foreign leaders whose interests might not be aligned with ours. Increasing America's debt weakens us domestically and internationally. Leadership means that ''the buck stops here.'' Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better. I therefore intend to oppose the effort to increase America's debt limit." - Senator Barack Obama, March 16, 2006*

4. We don't have to reinvent the wheel on spending.

If we go back to 2003 spending levels we can begin to pull ourselves out of this fiscal crisis that we are in. If we went a step further back to the spending levels at the end of the Clinton administration, we could balance our budget. It is true that sacrifices will have to be made but if we don't make those sacrifices now, just imagine how much harder it will be in the future.

"The fact that we are here today to debate raising America's debt limit is a sign of leadership failure."
- Senator Barack Obama, March 16, 2006*

5. A rising national debt hinders jobs and the economy.

As the government continues to borrow money, confidence in the economy dwindles, business owners worry about how the government will pay its debts, and the talks of increasing government revenues by raising taxes causes businesses to save capital and plan for survival rather than planning for growth.

"[T]he cost of our debt is one of the fastest growing expenses in the Federal budget. This rising debt is a hidden domestic enemy... interest payments are a significant tax on all Americans-a debt tax that Washington doesn't want to talk about." - Senator Barack Obama, March 16, 2006*