Glenn Hubbard: Forget the debt ceiling and focus on debt

Glenn Hubbard: Forget the debt ceiling and focus on debt

 

On May 15, the US hit its “debt ceiling” of $14,300bn, covering publicly owned debt held by the Federal Reserve and government trust funds, and Washington is in a furore. While budget debates are often more talk than action, this one needs more talk – but of a different kind. That the US has an unsustainable fiscal trajectory is clear, but the problem is not the debt ceiling per se. My wife and I don’t vote on whether we will pay our bills. Rather, we discuss whether our spending or income needs adjustment. So too must it be for our national “family”.
http://link.ft.com/r/BLH300/72CM0Y/ZBHOFE/GK7UBA/18TZNB/QR/h?a1=2011&a2=5&a3=26