The Debt Limit and A Game Of Chicken

Politicians in Washington DC are in a tizzy of a kerfuffle of a snit over the government's debt limit.

What is the debt limit? It is a promise Congress made to itself to not borrow more money that allowed in a prescribed limit. 

The debt limit becomes a problem when our obligations to pay for stuff can't be met unless the US government borrows more money.

The  promise Congress made to itself to not borrow more money also includes a "break glass in case of an emergency" promise to itself to raise the debt limit as needed. 

Which Congress as done regularly since the whole concept of a debt limit was first created. 

Doesn't that just make our debt problem worse? Well, yes! 

So why do we keep having to raise the debt limit? 

Well, it might help to understand why the US government is in debt. 

The US government is in debt for the same reason anyone else is debt: the government spends more money than it's taking in.

There are two ways to address this: 

1) Spend less money. But what spending do you cut?  As much as politicians might campaign on cutting wasteful spending, if it's spending in that politician's district, well, suddenly "wasteful" becomes "necessary". The self interests of politicians of holding on to their elected positions gets in the way of any meaningful spending cuts. 

2) Take in more money. Well, that's called raising taxes and let's have a show of hands of any politician who wants to go back home and tell their voters "I raised your taxes" and the answer to that is no one. The self interests of politicians of holding on to their elected positions gets in the way of any meaningful taxation. 

Now the reason everyone is in a tizzy of a kerfuffle of a snit over raising the government's debt limit is the Republicans in the House of Representatives are making the case that enough is enough and we just can't keep going further into debt.

Which is a fair point. 

But...

The Republicans in the House of Representatives only make this point when there is a Democrat in the White House. 

Republicans held the government hostage when the debt limit needed to be raised when Barack Obama was President and they are doing it again with Joe Biden in the White House.

When the debt limit needed to be raised while Donald Trump was stinking up the White House, the Republicans in the House did not say one god damn thing about the urgent need to control the debt.  

Controlling, reducing or eliminating the government's debt is a legitimate issue but it only seems to be an issue whenever there is a perceived political advantage to be gained against the opposition.  

What exactly are Republicans pushing for in spending cuts ahead of the United States reaching it's debt limit?   

They want to cut Medicaid and food stamp benefits by imposing work requirements. You might think that people might only need Medicaid or food stamp assistance because they can't work. Well, that's the whole point. 

You might also think don't even Republicans have people in their districts who need Medicaid or food stamp assistance. Aren't they imperiling their own self interests in keeping their elected positions? Well, that's where your culture war issues come in. As long as poor stupid people who might actually need Medicaid or food stamp assistance are convinced Republicans are all that stand up to rampant abortions and a socialist gay agenda, well, they will vote against their self interests.  

Challenging the debt limit is not an exercise in fiscal responsibility, of actually controlling, reducing or eliminating the government's debt. It's a chance for the Republicans to score points in a game of political chicken against their Democrat opponents.  

So what happens if the US government reaches it's debt limit and does not act raise the debt? The United States will not be able to meet it's financial obligations and we will go into default. 

The US government will become Sears.  

The effect would have world wide consequences that would make the Great Depression seems like a tea party. 

All because the Republican party thinks it can win a game of chicken against Joe Biden and the Democrats.