House Republicans last week wisely backed off a threat to refuse to raise the federal debt ceiling, instead offering President Barack Obama a three-month extension of the government’s borrowing authority through April 15.
The GOP offer, which passed the House yesterday, would also force a debate on taxes and spending in the spring, as the deal would withhold pay for both chambers of Congress if either fails to pass a budget.
The constitutionality of withholding Congress’ pay remains subject to debate, but regardless, the deal is clearly the most reasonable offer put forth on the issue by the House GOP, and one that Obama should consider. Unfortunately, the deal would set Washington up for another quixotic, market-rattling dance with fate three months down the road, because some lawmakers and pundits still don’t realize that the debt ceiling is not the ideal tool for extracting budget concessions.
The debt ceiling — which was raised 17 times on Ronald Reagan’s watch, four times under Bill Clinton, seven times under George W. Bush and three times since Obama took office — is not tied in any way to proposed future spending. It’s a limit on how much the government can borrow to pay existing bills, and using it as a bargaining chip does nothing to reduce federal spending. Refusing to budge on it is akin to tossing the credit card bill into the furnace to teach one’s spouse about fiscal responsibility.
Polls show that a balanced budget is a high priority for most Americans, and yet the House GOP’s debt ceiling brinkmanship has proven deeply unpopular.
One can only surmise that voters are growing tired of Congress’ self-inflicted wounds to our economy.