Why Is There Still A Debt Ceiling?
Blame opportunistic politicians.
The political world is headed towards a breaking point on the debt ceiling. The Republican House and the Democratic Senate are trying to agree to a package that would raise the ceiling and prevent the nation from default. Democrats are mostly united in their desire to pay off the nation’s obligations without agreeing to substantial cuts in social programs. Republicans, on the other hand, are not exactly sure what they want. The most likely Republican demand is chaos, a protracted struggle that would undermine the Biden administration and lead to more power for the party’s most radical members.
Discourse around the debt ceiling has focused on Republican demands as well as the Democratic ability to circumvent them. Some observers, including Democratic Senator Joe Manchin of West Virginia, believe that a deal may be possible to reduce the deficit while avoiding cuts to Social Security and Medicare. He proposed that Democrats agree to raising the cap on Social Security-related payroll taxes, which currently extend to the first $160,200 of a person’s income. This move will likely not mollify Republican opponents, however, who are trying as hard as they can to not offer a direct proposal of their own.
The question of the debt ceiling’s very existence still remains. Why does such a problematic, vestigial…