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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: http://www.realclearpolitics.com/articles/2013/10/24/how_debt_ceilings_increase_debt_120447.html#ixzz2ikDal8KH 
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