Tag: Budget Process
Posted in United States
The US Has A Budgeting Problem…Not Exactly A Debt Ceiling Issue
Kurt L. Davis Jr. June 23, 2023
The U.S. Congress should consider switching from a federal debt ceiling as a nominal value to one fixed as a percentage of GDP. This debt ceiling should, on the one hand, be high enough that the government cannot reasonably cross it, but punitive enough that it disincentivizes profligate spending. This will save the U.S. from the annual political theater that occurs around debt ceiling talks and focus the discussion on the federal budget (and potentially taking revenue and spending decisions to actually control the deficit)…