After President Trump signed a Congress approved short-term raising of the U.S. debt ceiling on Friday lasting until early December, some Republicans on Capitol Hill question if it was good political policy to give Democratic leaders more leverage over handling the U.S. debt with President Trump’s domestic agenda having already stalled from legislative defeats this year and ahead of the 2018 mid-term elections that is expected to shakeup the political composition of Congress.
Rep. Jim Jordan (R-Ohio) Co-Founder of the right-leaning House Freedom Caucus, said on Fox News Sunday that he doesn’t think the short-term raising of the U.S. debt ceiling was good for the U.S. taxpayer because it didn’t do anything to address the underlying $ 20 trillion debt problem.
“Well, when you just raise the debt ceiling and don’t do anything to address the underlying problem, I mean, this is like your kid in college who’s got your credit card and he is spending more than he takes in and he’s already piled up a lot of debt and he gets to say, oh, for the next three months, I’ve got unlimited borrowing authority, I think if that was your son or my son, we’d have a problem with that. That’s what this deal in essence did” said Rep. Jordan on Fox News Sunday.
Rep. Jordan explained that he will get another “bite of the apple” to enact fiscal policy changes in early December when the U.S. debt ceiling will need to be raised again.
He said that they plan to put forward a plan to cap spending as a percentage of GDP and also focus on tax cuts to help the U.S. economy.
“Let’s cap spending as a percentage of GDP, let’s bring it back down to its modern times historic norm, below 20 percent of gross domestic product, and then let’s get this economy growing” said Rep. Jordan.
The U.S. debt ceiling relates to the total gross debt held in the hands of the public and in government accounts.
When the debt ceiling is reached, the U.S. Treasury has to undertake “extraordinary measures” to meet temporary financial obligations until a resolution is reached.
The U.S. has never gone into a default because the U.S. Treasury has taken extraordinary measures to prevent a default, although the U.S. Congress has threatened to default on the growing debt in the past unless political measures were first obtained such as spending caps and sequester cuts.
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