Eliminate the Debt Ceiling

I tend to agree with Elizabeth Warren here. If Trump wants to eliminate the debt ceiling, we ought to take the chance to eliminate one of the most damaging and ridiculous issues in American political life, one that brings the world’s economy to the brink way too often.

It is possible that hell has frozen over. President Trump and I agree on something very important: Abolish the debt limit.

The debt limit is a political tool that allows the minority party to threaten economic collapse, forcing Congress to negotiate its demands. It serves no other function. None. It has no impact on spending, and it doesn’t restrain the growth of the national debt.

I’ve pushed publicly and privately, whether Democrats or Republicans have been in charge, to scrap the debt ceiling permanently. Now, with Mr. Trump’s support, our country could finally get rid of this form of brinkmanship that has, for decades, threatened the stability of our economy.

The debt limit caps the amount of money the U.S. government can borrow. If the government hits the limit before Congress authorizes an increase, the U.S. would default on its debt. That means not making interest payments on U.S. bonds, not paying our military or halting Social Security checks. Chaos in the financial markets could cause millions of Americans to lose their jobs, while the cost of home mortgages and car loans would skyrocket. In short, we would create a self-inflicted financial crisis.

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Budgets are statements of our values. I believe it is wrong to strip 16 million Americans of their health insurance so that Jeff Bezos, a beneficiary of the proposed tax cuts, can buy a third yacht. It’s wrong to take away home health aides from people with disabilities so that Mark Zuckerberg can buy another Hawaiian compound. It’s wrong to push seniors out of nursing homes so that Elon Musk can take a rocket ship ride to Mars. The current “Big, Beautiful Bill” is morally bankrupt, and I will continue to fight against it.

But right now, we have a chance to make a permanent change that benefits our nation. Republicans in Congress can set aside their big, beautiful billionaire budget while lawmakers of both parties can come together to do what Mr. Trump urged last week, to recognize that the debt limit is “too devastating to be put in the hands of political people that may want to use it despite the horrendous effect it could have on our country.”

The president is right on this point: Let’s scrap the debt ceiling once and for all.

I completely understand the resistance to working with Trump in any way. Maybe by that standard Warren is wrong. But I’d like to think that the long-term benefits here should win out.