Eakinomics: Raising the Debt Limit

American Action Forum President Douglas Holtz-Eakin walks through the ramifications of not raising the debt limit.

Category:

News & Politics

Tags:

• Debt
• Doug Holtz-Eakin
• Debt Limit
• Spending
• Budget
• American Action Forum

[lejeunesage]

I still wonder why we reinstated this idiotic vote on raising the debt ceiling. As the CBO recommends, there should be an automatic raising of the debt ceiling anytime congress votes to approve a deficit-funded budget. If you don't want to raise the debt ceiling, then vote for a balanced budget, but don't vote to have a deficit and act surprised when the debt ceiling has to be raised.

[nandaiyo]

I kept waiting for him to introduce Robocop.

[uome2k7]

@KidRisky Lowering tax rates may increase revenue but we are past that inflection point on the curve. When Reagan cut taxes, deficits increased so he raised them but not enough. When Bush Jr cut taxes, deficits increased. I couldn't care less about the letter after their name but demanding revenue neutral tax increases when you don't pass spending neutral tax cuts is hypocritical.

[evan13579b]

@Yakko77

I don't know why you are telling me this, but I am not unaware of that. In addition there is something called a "baseline" which by default raises the amount we spend each year for 10 years so we aren't actually cutting we are just lowering the baseline right now.

Still, I think that what Boehner is doing is ok. We won't likely cut the deficit much until the wars stop anyway so its good to start nibbling now me thinks.

[KidRisky]

@uome2k7 I see, this is a partisan thing for you. Switch all the Rs and Ds around and you'd be on the other side. Quick question: when you say "tax cuts," do you mean in the rates or the revenue raised? Did you know that those are different things, and that they often move in opposite directions? Does that matter to you?

[Yakko77]

@evan13579b The deficit for just this year is about $1.5T and Boehner is pushing for a "deal" to cut $1.1 over 10 years. WE'RE SAVED!!!! It's time for Boehner and the rest of the old guard GOP to stop spitting on the Tea Party (which is the ONLY reason we're even having this debate or it'd be more endless spending and entitlements unto death being rubber stamped without even reading the Bill) and start living in fiscal reality or we WILL wind up like Greece.

[uome2k7]

@KidRisky Going to war and cutting taxes is irresponsible. Paying for expanded subscription plans and cutting taxes is irresponsible. Doubling defense spending and cutting taxes is irresponsible. Voting for tax cuts without accompanying and equivalent spending cuts is irresponsible. Keeping war spending off the books is irresponsible. Giving no bid contracts to companies your VP previously was on the board for is irresponsible. Not paying off debt with surpluses is irresponsible.