The Nation´s Debt Limit Debate

Satisfactory Essays
When we talk about a debt limit, most people think of their credit card limit. The limit is set so you cannot overspend. It is the opposite when referring to the nation's debt limit, it is suppose to allow more borrowing power to the government (Przybyla). Currently, the nation's debt is "$16.7 trillion" (Przybyla). The recent government shutdown was because Republicans did not want to increase the debt ceiling (Przybyla). The fear of our country being downgraded for not paying our debts was a huge concern and both parties were urged to come to an agreement (Przybyla). The Democrats and President Obama would not negotiate so the Republicans conceded to a point, only temporarily extending the budget and the debt limit (Przybyla). What are the positions of the Democrats and the Republicans on the debt limit, and which side do you mostly agree with?
The Republicans main argument was to cut spending to equal the increase of the debt ceiling (United). Another argument was wanting the budget balanced in the next decade along with spending reductions "in the discretionary budget as well as for entitlements" (United). Democrats and the president wanted the debt limit raised without any stipulations because we were approaching a possible default on the nation's debt (United). The Republicans held the position that the government could pay interest on their debt (United). Some Democrats in the House wanted to get rid of the debt limit but several economists felt that it would "lead to uncertainty and poor fiscal outcomes" (United). Democrats and the president believed they already met budget compromises with the sequestration (United). The sequestration included spending cuts in "the defense and non-defense categories" with exemptions for "Social Security, Medicaid, federal pensions and veteran's benefits" (Budget). Many federal workers were also forced to take leave without pay (Budget). The Republicans wanted to extend certain parts of "Obamacare", but that was non-negotiable with the Democrats and the president (Przybyla).
The debate ended with an agreement to extend the budget until January and the debt limit until February (United). The shutdown caused the Republicans to lose approval with Americans and the Democrats lost approval over the budget issues (United) The crisis is not over, it has just been postponed. The problem is that all of this debt has to be paid back. Where will the money come from? The nation was experiencing a surplus in 2000, but several factors including increased defense spending created a deficit (Stone 242).
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