The graph below represents the cost per
capita (or person) for the past three presidential administrations. During the
Clinton era the cost was fairly steady throughout his term. The Bush era made a
huge crash and costs went soaring up by more than 3,000 a person. President
Obama took office and now he has decreased the cost during his presidency. This
graph, according to the Rachel Maddow blog, proves that the economy, while
slow, is improving.
This graph below details through the years the GDP verses
the Debt limit. As you can see the debt ceiling has been raised every single
year. The dip in the graph towards the end of the George Bush era represents
the recession America fell to in the early 2000’s. Also, you can see during the
Clinton administration, the debt ceiling stayed fairly steady during his
presidency.
I find it very interesting how congress decides it is necessary to raise the debt ceiling. During the Clinton era, when our country had no debt and was receiving a surplus congress decided to raise the debt ceiling. How does congress decide they need to raise the ceiling?
The debt ceiling according to the US Treasury is a way to make sure the government is continuing obligations such as things like Social Security and Medicare. Something that the debt ceiling does not do is “authorize new spending commitments”. It does not increase government spending; it only allows the Treasury department to pay for expenditures Congress has approved.
The Milwaukee Journal noted that the next vote in May, the Republicans wont’ be afraid to let the government shut down. This would cause spending cuts to things like Medicare, Medicaid and salaries to military personnel. It would increase America’s borrowing costs and ruin the growth of the economy, thus adding to future deficits.
What people don’t know is the controversy over continually raising the debt ceiling. According to The Washington Post, in 2011, the debt limit was set at $14.3 trillion, which exceeded revenue by almost 45%. Do you think congress should require a vote so the US Treasury can pay for normal spending commitments?
You may ask yourself, Will America always borrow money? Will we ever have a surplus like back in the Clinton era? Well according to the Congressional Budget office, this chart shows the projected debt for America in the next few years. This chart shows two scenarios, The Alternative Fiscal Scenario, which is no longer realistic (it required the Bush tax cuts to never expire) and the Extended Baseline scenario, a more realistic view of projected debt.
To answer your question "Do you think congress should require a vote so the US Treasury can pay for normal spending commitments?" I do believe that we need to require a vote to for the US treasury to pay. It would follow more along the lines of the Constitution of representation being the key component. The choice to vote is one of the very basic ideas of our country, and even if people choose not to vote in certain situations it can help the citizens of the United States of America feel more secure knowing that they each have their own vote in the possible spending policies of the country. So maybe a requirement is a little unnecessary but giving the option to the people willing to take it could boost national morale and help them feel like they have their own say in things. Honestly, even if the voting doesn't necessarily mean anything, it really could help the slow minded citizens feel better and clam their "nerves." So yes a voting system could help in this situation.
ReplyDelete-Alex Graham
To my knowledge, I was not surprised that a quarter of jobs in America are below the poverty line. With some individuals not receiving enough education or other personal issues, the only thing that they can result to are jobs that pay minimum wage. In America, apparently the quantity of jobs is greater than the quality – this is something that needs to be revised. In Tuesdays State of the Union, President Obama spoke about how he wants to raise the minimum wage to $9.00. Although this is difficult, it is a priority in order to raise the poverty line in America.
ReplyDeleteTo answer your question I don't think that congress should have to vote every year to raise the debt ceiling, because as you said before all congress does is grant the right for the treasury to pay the debt, they would have to anyways. Voting again in May is pointless because all it will do is waste time.
ReplyDeleteI agree with Hannah in the fact that voting will only delay the inevitable. Congress will still continue to vote to raise the debt limit, but is this really necessary. If the United States took a more proactive look at their budget and eliminated all unnecessary spending, then not only could we help to create budget surpluses to help reduce debt, but it could increase consumer confidence and therefore consumer spending in the economy. I however, do not think that raising taxes will lead to any economic growth, just a frustrated American public that will be reluctant to spend.
ReplyDelete-Bailey Zimmerly