Eliminating the Debt Limit Is a Reckless Move

Cato Institute Director of Budget and Entitlement Policy Romina Boccia is available for interviews in light of President-elect Trump’s call to abolish the debt ceiling.

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Boccia passed along the following statement:

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Scrapping the debt limit would be a reckless move that goes against the very idea of what Trump’s Department of Government Efficiency is supposed to achieve: fiscal restraint.

Congress should not repeal but replace the debt limit with a smarter tool like a business-cycle balanced budget amendment that is modeled after the Swiss debt brake, which ties spending to economic growth and ensures fiscal discipline.

The debt limit has driven every major deficit reduction deal since 1985, from the Budget Control Act to the 2023 Fiscal Responsibility Act—proving its worth as a check on runaway debt.

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Boccia wrote a blog on automatic debt limit increases which you can read here.

If you would like to speak with Boccia on this issue, please contact me to set up an interview.