Josh Dorner on Think Progress:
Appearing on CNN’s State of the Union yesterday, RNC Chairman Michael Steele …told host Candy Crowley the GOP is “not going to compromise on raising the debt ceiling” — something that will almost certainly lead to a government shutdown and economic catastrophe.
Mike Lee, candidate for U.S. Senate from Utah, in an interview with National Public Radio:
LEE: Our current debt is a little shy of $14 trillion. And I don‘t want it to increase 1 cent above the current debt limit. And I will vote against that.
NPR: Even if it leads to a government default or a shutdown?
LEE: It‘s an inconvenience. It would be frustrating to many, many people. And it‘s not a great thing. And yet, at the same time, it‘s not something that we can rule out. It may be absolutely necessary.
The U.S. debt ceiling was first enacted in 1917. It has been increased by Congress about a hundred times, usually without any controversy at all. The limit was increased to $14.3 trillion on February 12, 2010. In February 2011, another vote to raise the ceiling is expected.
According to the Center for American Progress, failure to raise the debt ceiling would result in “the immediate cessation of more than 40 percent of all federal government activities (excluding only interest payments on the national debt), including Social Security, military operations in Iraq and Afghanistan, homeland security, Medicare, and unemployment insurance.”
Suddenly pulling trillions of dollars in public spending out of the economy, as well as inducing a worldwide financial panic and a run on U.S. sovereign debt would “almost certainly result in a severe drop in economic growth and employment” and could potentially “take us into a Second Great Depression.”
Elections have consequences. If the Republicans take over the House and possibly the Senate, they are threatening to shut down the government like Newt Gingrich did twice in 1995. Meanwhile, they refuse to consider letting the Bush tax cuts for the rich expire on schedule, as planned. Those tax cuts are the principal long-term cause of federal deficits [Thanks to Steve in comments for pointing out the error in the original version].
UPDATE: The Looming Republican Blackmail Over the Debt Limit
#1 by Steve on November 1, 2010 - 4:51 pm
Call me crazy here, but I can’t help thinking that DEFICIT SPENDING is the main cause of DEFICIT SPENDING. Blaming bush tax cuts for deficit spending is like suggesting It’s your paycheck’s fault if you buy things you can’t afford to pay for. Maybe it would be a good idea to…again I must be insane for suggesting it…SPEND LESS. Moderate voters have noted that democrats have more trouble with this than republicans over the last two years and tomorrow they will speak.
#2 by Glenden Brown on November 1, 2010 - 5:13 pm
Actually the Bush tax cuts were like buying a house then quitting your decent paying job to work at minimum wage and wondering why you can’t pay the bills.
#3 by Richard Warnick on November 1, 2010 - 5:05 pm
Oops. I should have said “deficits.” I’ll correct that. But did you look at the link, with the Center for Budget and Policy Priorities graph? If Congress simply does nothing and allows the Bush tax cuts to expire as planned, then the long-term deficit problem is basically cut in half (the rest is due to wars and our wrecked economy).
David Stockman, the director of the Office of Management and Budget under Ronald Reagan:
#4 by Larry Bergan on November 1, 2010 - 7:54 pm
Does this mean they’re going to shut down the secret government too?
#5 by Ronald D. Hunt on November 1, 2010 - 11:44 pm
Factor in the fact that States have been running on stimulus funds from the ARRA so their will already be a big hit in jobs in the start of the year as that won’t be extended, and it sounds pretty ugly.
Of course it gives democrats one hell of a narrative going into 2012 at least.
I think the bug question however will be rather or not they do something about filibuster abuse in the senate.