Claiming that Republican lawmakers have “weaponized” the debt ceiling, a group of House Democrats have introduced legislation that would do away with the cap on the Nation’s borrowing limit.
The Democrats argue that a repeal of the debt ceiling would allow Congress to move forward with legislation that promotes jobs, economic recovery and growth instead of arguing over the Nation’s borrowing limit year after year.
“We cannot allow our economy to be threatened every year by political extremists intent on exploiting the debt ceiling to force through massive cuts and so-called entitlement reform,” said Representative Jerrold Nadler (D- NY). “The debt ceiling is arbitrary, doesn’t affect the deficit, and serves no real function in keeping spending down — and it’s time to abolish it. Only then will we be certain to pay our bills on time and take away from extremists this tool for political blackmail.”
The House, which is led by Republicans who use the debt ceiling as a bargaining chip in getting Democrats to agree to spending cuts, is expected to quash the proposal.
The Nation reached its $16.4 trillion borrowing limit at the end of last month. The Treasury Department has since been relying on “extraordinary measures” to pay the Nation’s bills in the time it takes for Congress to agree on what GOP demands will have to be met before it can be raised. It is likely that Republicans will champion a deal similar to that reached during the last debt limit debates, which mandates spending cuts equal to the amount the limit is raised.
The idea of doing away with the debt ceiling has also been championed by Federal Reserve Chairman Ben Bernanke.