facebook
twitter
rss
account
search
search
 

Obama's debt ceiling win comes at terribly high price

By PETER MORICI, UPI Outside View Commentator   |   Oct. 16, 2013 at 12:16 PM   |   Comments

| License Photo
COLLEGE PARK, Md., Oct. 16 (UPI) -- To end the U.S. government shutdown and raise the debt ceiling without accepting any meaningful Republican conditions, U.S. President Barack Obama has resorted to falsehoods, wounded American democracy and damaged U.S. global leadership.

The president has accused the House GOP majority of refusing to pay bills Congress has already racked up, not doing its job and defying the outcome of the 2012 election. The $17 trillion outstanding national debt funded past spending and raising the debt ceiling is all about the government spending more than it taxes going forward.

The U.S. Constitution requires that revenue bills originate in the House of Representatives, not the president's desk. If Obama wants to spend more than the country can afford, it requires him to negotiate with the House -- that's where the framers put the money.

The House was given this power because it is closest to the pulse of the people, who in 2012 elected a majority of representatives promising to cut spending and reduce deficits.

Obama's victory in the 2012 presidential election turned on many issues, including immigration, foreign policies toward China and in the Middle East and the environment. It is disingenuous to say his election affirmed voter support for the Affordable Care Act.

Poll after poll -- at the time the ACA was passed, during the election and now -- revealed the majority of Americans don't like the law and want it substantially revised or repealed. The ethnic breakdown of election results indicate Obama's victory was much more the result of Mitt Romney's inability to appeal to Latino and Asian voters.

Each month the government collects $250 billion in taxes and, if the Congress decided not to raise the debt ceiling, U.S. Treasury Secretary Jack Lew would have adequate resources to pay the $23 billion in interest to the public.

Each month, the government spends about $315 billion. If the House judges the resulting accumulation of $65 billion in new debt to be too burdensome -- as the public has repeatedly expressed by electing conservatives to the House -- the president has a constitutional duty to negotiate with the House rather than demand "clean bills" and spend as he pleases. The House would be derelict to simply roll over to presidential demands for powers the Constitution doesn't provide.

To pressure House Republicans, Lew has purposefully cultivated fear in financial markets by falsely stating the United States must default if Congress fails to raise the debt ceiling. That would only happen if he failed to establish appropriate priorities for the $250 billion in taxes collected each month.

His doomsday rhetoric makes the U.S. government appear inept and irresponsible, has eroded the primary standing of U.S. securities in global markets and will weaken U.S. economic leadership in global forums for many years to come.

Senate negotiators hammered out a bill acceptable to Obama that reopened the government and raised the debt ceiling and House Democrats and moderate Republicans voted for it.

The president's victory will be accomplished through deception and demagoguery, by violating the will of voters expressed in the 2012 congressional elections and the Constitution and damaging U.S. global standing. Those are mighty high prices to pay for a president's refusal to negotiate changes to a healthcare law voters clearly want changed and reducing budget deficits voters want slashed.

--

(Peter Morici, an economist and professor at the University of Maryland Robert H. Smith School of Business, is a widely published columnist. Follow him on Twitter: @pmorici1)

--

(United Press International's "Outside View" commentaries are written by outside contributors who specialize in a variety of important issues. The views expressed do not necessarily reflect those of United Press International. In the interests of creating an open forum, original submissions are invited.)

© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Tesla could face sales ban in Michigan Tesla could face sales ban in Michigan
2
Elizabeth Warren continues chanting: 'The game is rigged' Elizabeth Warren continues chanting: 'The game is rigged'
3
Early completion of refit of Italian aircraft carrier Early completion of refit of Italian aircraft carrier
4
'Sisterhood of the Traveling Pants' stars reunite at America Ferrera's NYC show 'Sisterhood of the Traveling Pants' stars reunite at America Ferrera's NYC show
5
Northern California heart attack victim eaten by bear Northern California heart attack victim eaten by bear
Trending News
Around the Web
x
Feedback