Search This Blog

Friday, October 25, 2013

How 'Debt Ceilings' Increase Debt

How 'Debt Ceilings' Increase Debt

By Gary Becker and Edward Lazear - October 24, 2013

The recent wrangling in Washington over the debt ceiling, with both sides promising to return to battle early next year, never got around to considering this proposition: Maybe debt ceilings are a bad idea, because they may lead to increased spending.

A debt ceiling may seem like a good way to constrain out-of-control government, by focusing attention on the federal deficit and the resulting debt increase. (For the record, the United States debt recently surpassed $17 trillion.) But that focus draws attention from the underlying problem: too much spending.

Read more: 
Follow us: @RCP_Articles on Twitt

No comments:

Post a Comment