Debt Ceiling Debate

Paul Ryan vs. Stephen Schneck – A Budget Debate between Catholics and a Request for Your Input

In the US currently there is a debate underway with lots of rhetoric, finger pointing and arm waving going on. There are party lines which have been drawn, and there is much at stake. As a Canadian, I appreciate that this issue, which is monumental, is to an extent, out in the open. In Canada we don't have a debt ceiling; we just spend the money we don't have. Well, I guess that is what is happening in the US as well in reality?

The blog post by Monsignor Charles Pope over at the Archdiocese of Washington linked below shows the two sides of the debate from Catholic perspectives.

But, they seem to be missing a major point, in my personal opinion. The US is in debt - public debt only excluding unfunded pension liabilities, for example, - to the tune of about $14.4 trillion at the moment, and it is climbing daily by numbers that are beyond our individual comprehension.

So, the House, Senate and President's Office are debating how to get to borrow more money, to fund the 40 cents out of every dollar of government spending that they are not taking in in tax revenues.

So let me put this as clearly as possible. The US owes $14.4 trillion and spends 66% more than it takes in in revenue. In the real world, a company operating like this is called an undeclared bankrupt, or is pushed into bankruptcy officially. But, they intend to raise the debt ceiling a few trillion or so, and might make some cuts in spending. The Republicans don't want to raise taxes, and the Democrats do not want to cut programs.

So to an extent both parties are wanting to rearrange the deck chairs on the Titanic.

Here in our house, My Dear Wife and I give from our income to assist charities that we believe in. We do not borrow from the bank, or from foreign governments to make charitable donations, because that would be bad stewardship of our assets.

What's wrong with this picture?

Paul Ryan vs. Stephen Schneck – A Budget Debate between Catholics and a Request for Your Input