A new year brings the old tradition of default and bankruptcy fears to our nation’s capitol. The federal government is again within reach of the debt ceiling, the maximum allowable amount the government can borrow. The upcoming debate on an increase to the ceiling provides Republican leadership a golden opportunity to keep some of its most important campaign promises.
As much as libertarians may complain about debt, the increase is a foregone conclusion. If the government cannot borrow money to cover the ridiculous commitments Congress forced upon the system, it will default. If this were to occur, worldwide trust in the full faith and credit of the federal government, which our dollar is based on, will plummet. Even the staunchest budget hawk, Rep. Ron Paul (R-TX) admits a debt ceiling increase is necessary.
The only thing worse than being more than $14 trillion in debt is bankruptcy.
Our future depends on this bill. If Congress fails to act, the government will default. However, without severe spending cuts, Congress will continue its spending binge and shoulder future generations with an insurmountable burden of debt.
The debt ceiling bill does not need to be passed by itself. Amending time-sensitive legislation is a standard Congressional strategy that Republicans should take advantage of. Included with the debt ceiling increase should be substantial spending cuts from Health & Human Services and Defense.
It is likely the opposition will complain about any amendment strategy and call the maneuver a dangerous game of chicken with the economy. Such vitriol is common among both parties when they are in the minority. Democrats should recall a 2007 debate where they gambled the lives of American soldiers by demanding a bill for spending on the wars in Iraq and Afghanistan be attached to a large increase in the minimum wage. With that perspective, almost anything would be acceptable.
Republicans should attach more than just a few strings. Every single spending cut imaginable should go into this debt ceiling bill. As long as Social Security is not involved, the Senate can take up the House bill under the reconciliation procedure, where only 51 votes are required to prevent a filibuster. The difficulty will be in negotiations in joint committee with the Senate to try and get enough votes while making the bill as robust as possible.
This would be no different than any other pork-laden bill in the past, except the pork would in fact be deficit reducing amendments.
Republicans would also be wise to consider attaching a modified ObamaCare repeal to the debt ceiling bill. Republicans promised to vote for a repeal bill under largely symbolic circumstances. The repeal in an unadulterated form will pass the House only to die in the Senate, where Democrats retain a slight majority. A modified health care repeal bill only regarding budgetary issues would only need 51 votes to pass the Senate. Republicans could remove fines and taxation issues associated with the bill as well as kill funding for oversight agencies. After a new, unadulterated Congressional Budget Office report shows a health care repeal will indeed save money, moderate Senate Democrats will be hard pressed to explain their disapproval. When further packaged with the required debt ceiling increase, this repeal becomes formidable.
Even if the effort fails, it will serve to wear down resistance to the deep cuts needed in other sectors of government. Democrats will be caught up in the health care debate and may let other important spending cuts pass through.
This debt ceiling gives Republicans an excellent opportunity. If the Republican party plans on acting in Congress, it should do so with this debate and this bill. If enough cuts are included, a debt ceiling increase should never again come up for debate.
If House Speaker John Boehner (R-OH) and company can accomplish that, the 112th Congress will be remembered not for bills laden with pork, but for finally doing something about America’s greatest national and economic security concern.