Who Will Win the Next Debt Ceiling Fight?
Posted at 12:45 p.m. on Aug. 16
As Congress prepares to once again negotiate to increase the nation’s debt ceiling, Matthew Yglesias draws lessons from the last two debt ceiling crises.
“During the First Debt Ceiling Crisis, Republicans insisted on $1 of spending cuts for every $1 of new borrowing authority. The Obama administration, rather than sweeping this aside, decided to try to play some clever political jujitsu… After a lot of twists and turns what we ended up with was sequestration.”
“During the Second Debt Ceiling Crisis, Republicans said they were going to once again insist on the 1:1 forumula. They ultimately settled for the faux-concession of a ‘no budget no pay’ rule… Republicans realized that they’d negotiated for something worthless and started refusing to hold a conference committee to reconcile the House and Senate budgets.”
“Obama could do the country a favor…by exploting the platinum coin loophole to make the debt ceiling irrelevant… ut absent that, the real meaning of this escalating demand seems to me to be that House leadership is just setting itself up for a Hastert Rule violation. House Democrats, paired with a small number of House Republicans, will pass a more-or-less clean debt ceiling increase.”