Debt Ceiling Hysteria and Hypocrisy• Ron Paul Institute - Ron Paul
House Republicans are demanding that President Biden and Senate Democrats agree to include spending cuts with the debt ceiling increase. However, President Biden and the congressional Democrats are refusing to negotiate with Republicans. Rather, they and their allies in the mainstream media are lambasting Republicans for their "irresponsibility" in seeking to include spending cuts with an increase in the debt ceiling.
America's national debt is approximately 122 percent of the gross domestic product (GDP), meaning the government owes more than the population produces. Interest payments on the national debt follow in size behind other federal budget big spending areas of Social Security, Medicare, and "defense." While interest payments are made, the national debt continues to grow each year.
Government spending steals resources from the private sector. Thus, there is less capital available for private businesses to grow and create new jobs. Government spending also contributes to price inflation and the declining value of the dollar as the Federal Reserve monetizes the debt. One reason the Fed cannot allow interest rates to rise anywhere near where they would be in a free market is that it would cause the federal government's interest payments to rise to unsustainable levels. Considering these facts, it should be clear that the irresponsible ones are those who think the government should increase its credit limit without cutting spending.