Economists tend to either dislike or loath Donald Trump’s policies. But a couple of years ago, the president had an idea that would have improved his standing with technocrats: He said he wanted to erase the debt ceiling, the limit on the amount the Treasury is legally allowed to borrow to fund the government even if the U.S. has expenses that exceed it.
With the way Congress spends money, it’s a number that has to be constantly raised by bipartisan agreement — which has turned it into a vehicle for political hostage-taking as each party tries to use it to force its fiscal agenda on the other side while the Damocles Sword of an impending U.S. default, should the limit not be raised, acts as palpitation-inducing pressure.
The inane policy fails miserably at its stated aim, exacerbates political polarization and threatens economic chaos on a semi-regular basis.
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