Conservative Thoughts on the Increase of the Federal Debt Limit

The federal debt limit was raised to well over $17 trillion by the Congress and President, without any offsetting budget cuts. 

The cuts to future military retirees’ pensions were restored.  I had posted that there was bipartisan support for restoring them in my December of 2013 post, Conservative Analysis of the Two-Year United States Budget Deal, http://williamcinfici.blogspot.com/2013/12/conservative-analysis-of-two-year.html. 

The purpose of the debt limit is to give Congress the discretion on whether to raise or lower it. It is not, as liberals argue, automatically to raise it, or else it would not be subject to public debate and a vote.  In anticipation of bills to paid, it is necessary to raise the debt limit to cover those bills, if expected revenues are insufficient to equal the expenditures.  It is prudent to require offsetting spending reductions, however, because of the growth of the federal debt, which now exceeds the gross domestic product.

Conservative Republican members of Congress attempted to enact spending offsets, but their effort failed as the Legislative Branch gave up its leverage with the Executive Branch.  Thus, an opportunity for more spending restraint and fiscal responsibility was lost.  The political climate of blame for the legislative struggles between liberals who wish to spend more and conservatives who wish to spend less was unfavorable for the latter, even though a convincing case could be made that the liberals have been unreasonable in their opposition to budget cuts, which has forced the government shutdown or brought the federal government to the brink of running out of spending authority.  The resolution of the debt limit question gives temporary certainty for the market, as well, until the limit is exceeded yet again. 

Despite the necessity of having to compromise with the liberal Democratic-controlled Senate and President Barack Obama, conservative House Republicans have nevertheless been effective in significantly decreasing the annual budget deficit and slowing the growth of the debt, but a minority opposition party must effectively use the power it has, under the political circumstances.  Greater progress in restoring fiscal responsibility than what Republicans in Congress usually achieve will likely come only after the GOP wins the majority of the Senate in the 2014 General Election.