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BO: People Think Higher Debt Limit = Higher Debt

From CNS News:

Obama: ‘Raising the Debt Ceiling…Does Not Increase Our Debt,’ Though It Has ‘Over 100 Times’

By Craig Bannister | September 18, 2013

Raising the debt ceiling doesn’t increase the nation’s debt, Pres. Obama declared in a speech today. In a speech at the Business Roundtable headquarters in Washington, D.C., Obama dismissed concerns about raising the debt ceiling by noting that it’d been done so many times in the past:

"Now, this debt ceiling — I just want to remind people in case you haven’t been keeping up — raising the debt ceiling, which has been done over a hundred times, does not increase our debt; it does not somehow promote profligacy.

Really? If you increase the credit card limit on someone who is a spendthrift, will that promote his profligacy or not? On the other hand, if you refuse to increase his limit, will that decrease his profligacy?

All it does is it says you got to pay the bills that you’ve already racked up, Congress. It’s a basic function of making sure that the full faith and credit of the United States is preserved."

That is not quite true. The debt ceiling is a legislative restriction on the amount of national debt that can be issued by the US Treasury. In fact, it was first instituted in 1917 to limit the amount of Liberty Bonds that the Treasury could issue during WWI.

That is to say, it was created to prevent the government from racking up too much debt. Which is why it’s called a debt limit.

Obama went on to suggest that "the average person" mistakenly thinks that raising the debt ceiling means the U.S. is racking up more debt:

"It’s always a tough vote because the average person thinks raising the debt ceiling must mean that we’re running up our debt, so people don’t like to vote on it, and, typically, there’s some gamesmanship in terms of making the President’s party shoulder the burden of raising the — taking the vote."

But, isn’t the fact that the U.S. has hit its debt ceiling "over a hundred times" – and, thus, has had to keep raising it – proof that raising the limit does, in fact, lead to increased debt?

Luckily, the average person understands that if the limit is raised, the government will be allowed to do more borrowing, which means more debt.

But what does the average person know about the nuances of economics? They have never been a (failed) community organizer. They have not gone to Harvard Law School.

This article was posted by Steve Gilbert on Thursday, September 19th, 2013. Comments are currently closed.

6 Responses to “BO: People Think Higher Debt Limit = Higher Debt”

  1. dasher

    Where to begin?

    1. http://www.youtube.com/watch?v=ydZTHPkOnvE (candidate Obama)

    2. http://www.youtube.com/watch?v=ELkbDdPeL7I (Harry Reid)

    3. http://www.youtube.com/watch?v=eYFQh4U91Qk (Say what? Juan Williams)

    Back to work…

    D.

  2. Define Parsing – analyze (a sentence) into its parts and describe their syntactic roles.

    Define Fact – “Giving money and power to government is like giving whiskey and car keys to teenage boys.” – P. J. O’Rourke

    Conclusion – “If you raise it, they will spend it.”

  3. “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… America has a debt problem and a failure of leadership. Americans deserve better.”

    Senator Barack Obama on March 20, 2006

    I agree…..

  4. captstubby

    “the average person” mistakenly thinks …”

    Spock: Your logical is impeccable,

    what we are seeing is a little know Fail Safe the Democrats deploy.

    The Corbomite Maneuver

    Kirk: This is the Captain of the Enterprise. Our respect for other life forms requires that we give you this… warning. There is one critical item of information that has never been incorporated into the memory banks of any Earth ship.

    Since the early years of space exploration, Earth vessels have had incorporated into them a substance known as… corbomite.
    It is a material and a device which prevents attack on us. If any destructive energy touches our vessel, a reverse reaction of equal strength is created, destroying…
    Balok: You now have two minutes.
    Kirk: …destroying the attacker.

    Kirk
    We grow annoyed at your foolishness.

    Spock: Has it occurred to you that there’s a certain… inefficiency in constantly questioning me on things you’ve already made up your mind about?
    Kirk: It gives me emotional security.

    Spock: Fascinating.

    • Reminds me more of A Taste of Armageddon. “I must acknowledge, once and for all, that the purpose of diplomacy is to prolong a crisis. ~ Mr. Spock

      And after listening to Obama speak, I often feel like the Horta from Devil in the Dark… “AHHHHHHHHHHHHHHHHH… PAIN!!!!!!” ~ Mother Horta.

  5. wirenut

    This is ‘soooo’ insane. I’ve only lost 4 grand in total wages per year since this fool became a King. Next-up, “How to make ‘grovel’ tactical, if not, tasteful!”. I bow to no man, but “I” will to my maker. Debt creates dependancy, and a huge voting block. Future genrerations need to know about obligations. Blood and treasure.




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