How 'Debt Ceilings' Increase Debt
By Gary Becker and Edward Lazear
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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