Bipartisan Lawmakers Preparing Plan to Avert Debt-Ceiling Crisis

Shouldn't the goal be we grow the government less than the economy so that the government takes less and less a share of GDP and that capital is left in the market and the economy? Why should government have a consistent share of GDP?

Yes tax rate cuts work don't they.

There was nothing rapid about the worst recovery in modern history and it took the Republicans taking back first the House and then the Senate and then the WH to get things back on track.

 

I think the dems might. They seem to prefer to pay for bills with revenue rather than borrowing.
But the R's likely won't. They prefer to not pay for their bills and run up debt and deficits.

Dems = tax and spend
R's = borrow and spend

Take your choice on the 2 party system.

 

Don't ask me, ask the politicians. Both parties increase spending.

Tax cuts work in a strong growth economy. They become a burden in a slow of falling economy.

Like the turtle did in the turtle and the hare.
Slow and steady tax the prize.

 

i happen to ascribe to the framers frame of thought when it comes to finances: I think the more money that's in the private sector(read: Average joes like you and me, the better.). The stat for this is debt-GDP. We almost always had a positive debt-GDP, but it was steadily increasing over the last 30 years and now?

https://www.statista.com/statistics...us-in-relation-to-gross-domestic-product-gdp/

Now it's just disturbing. And no, calculating it a different way isn't going to fix their problems. Uncle Sam allowing the people to live without hounding them for every single dollar due to government spending would be a great start.(There's also credit card/student loan debts. But the biggest monster, is Uncle Sam.)

Make the Middle Class Free Again.

 

They report to us and it's how MUCH they increase spending and we know which party does that. Why do you support them if you are against debt and deficits?

Bush43 and the Reps proved you wrong.

Which produced the worst economic recovery in modern times.

 

I have not heard any gov't hounding people lately for money. Not sure what you're talking about.
Sure it's high now, we can level off spending, cut spending(likely won't happen), raise taxes, grow the economy.

Bottom line, is the hypocrites in the R party never mention any of this when they have the power of WH and congress to do something about it.
Instead they cut taxes and increase spending.

...
Good vs. Bad Debt-to-GDP Ratios
A study by the World Bank found that countries whose debt-to-GDP ratios exceed 77% for prolonged periods experience significant slowdowns in economic growth. Pointedly, every percentage point of debt above this level costs countries 0.017 percentage points in economic growth. This phenomenon is even more pronounced in emerging markets, where each additional percentage point of debt over 64% annually slows growth by 0.02%.3


120.23%
U.S. debt-to-GDP for Q3 2022—almost double early 2008 levels but down from the all-time high of 134.8% seen in Q2 2020.4

The U.S. has had a debt-to-GDP of over 77% since Q1 2009. To put these figures into perspective, the U.S.’s highest debt-to-GDP ratio was previously 106% at the end of World War II, in 1946.41


Debt levels gradually fell from their post-World War II peak, before plateauing between 31% and 40% in the 1970s—ultimately hitting a historic 23% low in 1974. Ratios have steadily risen since 1980 and then jumped sharply following 2007’s subprime housing crisis and the subsequent financial meltdown.1
Debt-to-GDP Ratio: Formula and What It Can Tell You (investopedia.com)

 

Actually, he proves me correct.


Economic Impact of Bush's Policies
George W. Bush's initiatives at home and abroad had significant financial consequences.

• Both tax cuts added an estimated $1.5 trillion to the debt from 2002 to 2011.25 They only increased growth enough to make up 10% of their long-run cost.26 In addition, they disproportionately benefited high-income households. The top 1% of households gained an after-tax income increase of 6.7%, while those in the lowest fifth made gains of just 1%.3 Maintaining the cuts has been estimated to cost $4.6 trillion from 2012 to 2021.24

President George W. Bush Economic Policies (thebalancemoney.com)

 

Why do you attribute the 2008 and 2009 budgets to just Bush and Bush policies?

And the deficit for 2008 was only $400B and in 2009 TARP was paid back with interest and did not add to the debt.

The fact remains Bush43 and the Reps got us through the 2001 recession with the right policies and the deficit only hit $400B, my what we would give for his worst deficit, and they quickly got it back down to a paltry $161B heading back to surplus and two years later the Dems soared it to $1,400B

 

Fake News. As of today all of 2022 is now available and the Gross Federal Debt 115.7% of GDP .



Raising the debt ceiling to 135% is ridiculous.

 

Here is the fact. By the time President Trump left office , he added 8 trillion dollars to US debt.

it's very interesting that trump wanted to cut budge the year he is not in office. if he was serious about cutting budget he should have done that when he was in office.

 

Here is the fact CONGRESS added the the trillions to the debt. Had they passed his budgets there wouldn't have been the 8 trillion.

Here's 2018

Trump proposes 5 percent budget cut for each Cabinet agency
With deficits surging since he took office, the president on Wednesday proposed major spending cuts Congress is unlikely to approve.
https://www.nbcnews.com/politics/po...ercent-budget-cut-each-cabinet-agency-n921231

Can I find you on record having opposed the emergency COVID spending?

 

While I understand that some people cannot think about anything but Trump, and the every topic is about Trump, this topic isn't about Trump. This topic is about the budget that the Democrat Congress passed and the Democrat President signed that is in excess of Debt ceiling agreed to by that same Congress and President. So now some adjustments will need to be made to spending and the debt limit to get us to 9/30/2023 the last day before the next fiscal year.

In your opinion, what would be the best solution to this problem?

 

The Graph you are quoting is not how the calculation of the Federal Debt to GDP is calculated. It is using the market value, which means that the T Bonds and T Bills have a premium if sold on the open market right now. The link I gave is the correct form and is based on how the calculation has always been done.

 

Trump may have proposed it, but his own party rejected it. And then he signed a new Omnibus spending package once it was done when there was a House Control by the Dems and the Senate was still controlled by the GOP.

 

Yes it is.

Yes, our Federal debt is held in marketable securities.

No it isn't. You are pretending that GAAP does not require securities to be marked to market.



We have NEVER hit 135% of debt to GDP. You are demanding that even though debt to GDP is falling nicely right, that we run it back up higher than it was at the COVID peak, higher than it was after fighting two empires at the same time, the German Empire and the Empire of Japan, higher in fact than EVER in our nation's history, and all of this just to get from 1/26/2023 to 09/30/2023 just because Classified Joe and the Elected Dems had their hearts set on yet another Inflation Stoking Red Ink Orgy? Completely ridiculous and out of the question.

Instead, there will be a discussion about cutting just one penny out of every dollar for whatever conditional spending was planned for the rest of the fiscal year, in exchange for raising the debt limit to the amount necessary to complete the fiscal year. And the House will have the next year's fiscal budget bills completed and ready for passage so that the US Senate can pass the budget bills in time for Classified Joe to sign them by 9/30/2023 and they will be prepared to raise the debt limit to the level necessary, that if the Federal Government sticks to the agreed on budget, to complete next fiscal year's budget.

Or of course Classified Joe and the Crazed Elected Dems, and their ilk, can demand a blank check and pinky swear that they will destroy Social Security and destroy the creditworthiness of the United States if they are refused a blank check to complete their planned inflation stoking Red Ink Orgy.

Classified Joe and the Crazed Elected Dems are bluffing of course, they swear that they won't negotiate and must be given a blank check, but, they'll negotiate.

 

Did any Dems support it?

I asked earlier do you support government shutdowns?

 

Debt Ceiling should be raised without debating cutting budget just like previous Republican President’s has done.

Reagan – 17 times raised debt ceiling, H Bush- 4 times raised debt ceiling, W Bush- 7 times raised debt ceiling , Trump – 2 times raised debt ceiling.

During these presidents, GOP had no problem raising the debt ceiling, during republican in WH , GOP has no problem with “ debt” , to quote a former GOP VP ,

"Reagan proved deficits don't matter," Dick Cheney.

GOP, we can see your pretentious worry about “debt” . GOP doesn’t give a hoot about debt when their guy is in power, they became fiscal conservatives only when Democrats are in WH.

 

Did Trump cut 5 % of Budget? The answer is NO.

No one give a hoot about , what was proposed. His budget didn’t cut any thing.

Regarding COVID spending , I agree with Trump. He did the right thing spending that money on COVID. But I am a liberal , I have no problem spending money and printing money.

But it seems like GOP finds all kind of reason and excuse to spend money when republican are in white house, but when Democrats are in WH, GOP thinks sky is falling if we don’t cut budget.

So let me say this. GOP has ZERO creditability when they talk about Fiscal conservatism.

Reagan – 17 times raised debt ceiling, H Bush- 4 times raised debt ceiling, W Bush- 7 times raised debt ceiling , Trump – 2 times raised debt ceiling.

 

The Presient can't cut the budget, he can only make suggestions to Congress to cut the budget. He is required to spend the money they appropriate. He can send a recission and ask they recind it but that is a rare occurance.

His budgets did, they were not passed by Congress.

You do know how the budget process works?

They why are you complaining about what that added to the deficit? What do you think happens when the government just prints money and spends it? Hint: we are having to live with that righ now.

The interest on the debt will soon be the highest annual expensive of the government, how long can we continue to increase it?

Well that is more than the -100 credibitily the Dems and left have and you just admitted you don't care about it.

CONGRESS raises the debt limit the President has no power or authority to do so.

 

GOP had control of congress first 2 years , and Trump didn’t proposed any budget cut , but when Trump knew Demes wouldn’t cut Trump’s budget, he proposed budget cut. How convenient to blame Democrats.

 

If I voted for someone twice for POTUS , I would be glad when someone bring up that person in every conversation.

I voted for Obama twice, and I have no problem defending Obama in every conversation. I am prod of Obama and prod of his presidency.

Seems like your are ashamed of Trump, that’s why you don’t like when we bring up example from Trump presidency.

 

I showed you he did and YES we need to get rid of the RINO's, and Dems, and replace with more fiscal conservatives. And we see even as I type Democrat Biden and the Democrat Senate is the party fighting for even HIGHER spending and trying to vilify the Rep's trying to just slow down the increases.

 

If you want to discuss Trump with me, there are hundreds of Trump topics, address your comments to me there and I'd be happy to respond to them on the appropriate topic.

This subject of this topic is something else.

 

Did Trump cut budget or not ?

The answer is NO. No one give a hoot what he proposed. He didn’t cut any thing. If trump couldn’t work with congress of his own party , it’s not democrats fault.

 

The debt limit is the debt limit. If the previous Congress wanted to raise the debt limit they would have, obviously they expected this fiscal year's spending to remain below the debt limit or they would have already raised it. So they screwed up. Now they want the debt ceiling raised because they failed to keep spending below the limit and McCarthy has agreed to raise it combined with some reasonable discretionary spending reduction, between whenever this agreement is finalized and the 9/30/2023 the end of the current fiscal year, so you are only talking about a few months.