Why We Need to Abolish the Debt Ceiling | Robert Reich

Robert Reich explains the debt ceiling and why it's time to abolish it once and for all.

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[patrickgilmore]

Abolish corporate person hood, end citizens united.

[psychomd]

Why can't anyone inside the Beltway read the Constitution? According to Section 4 of the 14th Amendment, the debt ceiling is unconstitutional. Also, a ruling by SCOTUS in 1935 ruled that all legal debts must be paid. There is no wiggle room. An article entitled the Two-Santa Theory - Wall Street Journal - May 7, 2010 explains the GOP tactic.

[deevalerie]

It would be great to see 2 min videos like this everywhere, explaining "Marxism" "Communism" "Socialism"- *Just to defuse all the fear & hate bombs* being planted by Fox News, Tucker & Marjorie Grifter Greene.

[mikeyfourbarrel]

I learned something this morning! Interesting points here. Thanks for sharing this.

[theresacarmen]

You make perfect sense, therefore we can't possibly do it.

[Peace-juus]

I have an idea, TAX THE RICH !!! NOW !!! Pay off the debt NOW !!!

[anthonydelfino]

There's also the trickly little thing that Congress is the one telling the President what he has to spend where and how much, as well as Congress sets the tax rate that determines how much money the President has to work with. Then, when the President is forced to borrow to spend the money that Congress required him to spend, Congress is then SHOCKED that we're going further into debt. This is a problem that should be solely on Congress to fix, and the President shouldn't participate in theses dramatic showdowns at all as he is bound by law on both accounts to do what they demand he do both in terms of spending and borrowing.

[stevebeutelspacher]

We should abolish the debt ceiling but I disagree that the National debt is only significant with respect to the GDP. Our government (US taxpayers) have to pay interest on the National debt. I believe the annual interest is currently in the neighborhood of $300B which is huge even by government standards. This is tax dollars that our government gets nothing for except the ability to borrow more money. Government needs to both cut spending and increase taxes especially on the wealthiest Americans in order to reign in this potentially catastrophic situation.

[jakubLonghorn]

Don’t always agree with Reich but this is just common sense. We suffer from the mere risk of a default, making the debt an even larger problem!

[Julie-bqiz]

I emailed my (Republican) US representative yesterday. Who cares that I didn't vote for him-I'm stuck with him. I reminded him he works for/represents me. His job is to do what's best for me/his district. I'm a mature person on Social Security, which I paid into my entire working life. It's mine. I reminded him his district is full of people like me, and also veterans, the disabled, the working poor, etc. I told him to do his job. If he screws up and doesn't watch out for us, he can kiss his job goodbye come the next election. I urge everyone to email their representative and do the same. They need to be strongly reminded who they work for. For God's sake, it's in their damn job title, 'representative'.

[jamesappling]

Antique Idea that really needs to go. A better idea is simply to make Congress do Their job.

[CarFreeSegnitz]

Debt is money owed by one party to another. When the government has a debt it is owed to someone.

Governments borrow money via the bond market. Someone or something buys those bonds. For wealthy individuals, corporations and pension plans bonds make a great passive investment and income. They don't need to build businesses, hire workers, create innovations. They just buy the bonds and stick them in the drawer. Now they're owed debt servicing payments.

Governments have other options. Raise taxes. Cut spending. Finance their debt by printing more money. But none of these options serve the wealthy and their bond-buying habits. But those options would save future debt-servicing costs.

Not only do bonds require interest payments but also shackles governments to actions the bond market deems desirable. Bond markets like stability, it likes it when the populace is still willing to pay their taxes and not revolt. The bond markets like a stable, pro-business, pro-wealth climate. The bond markets like peace and trade which don't risk the destruction of the nation's ability to pay its debt-servicing.

A government that defaults on its bonds or runs a balanced budget that requires no bond financing in the first place is free to be more responsive to the needs of its people. When the nation is treated unjustly it can react by going to war. When the nation's people are enslaved by multi-national corporations a debt-free government is free to nationalize a multi-national's operation within its border. A debt-free government can look out for the needs of its people over the whims and fashions of the global community.

[wvu]

Indeed. The debt ceiling contradicts the Constitution and should be stricken. It should be impossible to default given the Full Faith and Credit Clause.

[anonymouslee]

How much do the countries with no debt ceilings actually borrow?

[cttv]

no we need to immediately stop borrowing and at least make our minimum monthly payments on our nation's credit card.

[DotyString]

How about when GDP can’t pay the interest on the debt. Any takers?

[FOtus-ywrr]

Whether abolish or not, those spending don't care since it is not their money.

[davidlafleche]

No, how about cutting the budget 70%?

[plasenciajalisco]

All other videos are all the same..."what would happen if there is a default?" There’s like 100 videos on the same thing! This is the only video I could find on my question..."What would happen if the debt ceiling is removed/canceled?" Why aren't people voting to revoke it instead of raising it? Makes 1000% more sense.

[DrJohn-rlzg]

Just curious, are we still paying for Reagan's space lasers?