President Biden hosts meeting with business Leaders on need to address the debt limit

This video is some of the worst propaganda I have ever seen.

All the speakers lament over the consequences of not increasing the debt ceiling, but none addresses either of the following significant considerations:’

  • Federal debt once incurred must be repaid.
  • Using debt to pay for new spending is dumb. It is smarter to cut existing spending and reprogram the savings to new purposes.

Federal deficit spending increases the volume of money in the general (or private) economy. This can be a good thing, but it is not necessarily so. For example, increasing the volume of money can be good when the existing volume of money is too small to accommodate all the natural transactions that want to occur. Increasing the volume of money just because you want to spend more is foolishness on steroids.

Joe Biden is truly a stumbler: Stumble Joe.

5 thoughts on “President Biden hosts meeting with business Leaders on need to address the debt limit

  1. So, the spouse tells you, “Honey, I’ve overdrawn the checking account, so you need to take out a loan to cover it or it will wreck our credit rating. And while you’re at it, get me a credit card with no limit so this doesn’t happen again.”

    Do you call the bank or a divorce lawyer?

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  2. Raising the ceiling is to cover already approved and bipartisan spending. Are we covering the 8 or so Trillion that the last administration ran up?

    If default is imminent and cutting spending or increasing revenue is the solution, we still have to raise the ceiling. Those bills would take a lot longer to enact than default in 2 weeks.

    The reality is that Republicans have no will to cut spending anymore than Democrats except in rhetoric.

    At least the spending bills in question now have tax increases to cover most costs. And they are hardly onerous.

    We are now in the first fiscal year of the new administration. And the debt is 129% of GDP. That is troubling.

    Cutting the price of admission to be a US resident is no longer an option. That is my take on raising taxes, and better collections of existing revenue.

    Liked by 1 person

    1. There is a huge difference between raising the debt ceiling enough to continue the spending status quo and SUSPENDING the debt ceiling to remove all constraints on the $5trillion progressive wish list.

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    2. RE: “Raising the ceiling is to cover already approved and bipartisan spending.”

      I don’t see that as a good excuse. More to the point, I don’t see Stumble Joe’s doomsday fear mongering as reasonable. The video argues that we have to increase the debt or else our reputation will suffer. That’s like an adict saying, “I can’t quit heroin or else I’ll lose my identity.”

      Using taxation to limit spending would be reasonable, but politicians won’t do that.

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      1. “Using taxation to limit spending would be reasonable…”

        I don’t know what you mean. Democrats are trying to pay for their agenda, unlike Republicans who spend just as much or more but have saddled us with enormous debt.

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