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The Borrowing Power: Should the Sky be the Limit?

March 15, 2012
By KATHRYN SAFREED - JFK High School (PageOne@tribtoday.com) , Tribune Chronicle | TribToday.com

When the framers first created the Constitution of the United Stated of America, they gave Congress the power to borrow money. However, one thing they did not do was set a limit on how much Congress can borrow. This has made it so that Congress can borrow as much money as they want from the states, foreign investors, and even United States citizens through bonds. This has left behind a question pondered by the citizens of the United States for centuries: Should Congress have a limit on how much money they can borrow in one year?

It certainly sounds appropriate, given how much debt the nation is in at the moment. Perhaps if we had a set-in-stone limit, the national debt would go down and soon the nation would be back on the right track. In this article, we will take a look at three key areas of analysis that depict why we should have a limit on how much Congress can borrow.

First, let's take a look at all of the downright silly things that Congress has decided to spend money on. Now, the government has many programs, such as medical insurance and social security, that need funding and so it is important to keep putting money into these programs. However, the government has also spent money on things that are not important and might not even have any effect on the citizens of America.

For example, the government spent two million dollars to study exotic ants in the Southwest Indian Ocean Islands and east Africa. Yes, this does create jobs for photographers and researchers, but do Americans really need to know about ants on the on the other side of the world?

Surely this money could be used to create jobs in a way that will actually benefit American society. This is just one example of how the government has spent money on frivolous things that we simply do not need. This is also part of the reason why we need to borrow money. If we spent tax payer money on programs and studies that were actually needed by the United States, then we wouldn't have to borrow money from others. If these petty studies and programs were done away with, the money saved could go towards reducing the debt and supporting programs that actually improve the quality of living in America.

Second, Congress does claim that they do set a limit on borrowing by setting what is called a debt ceiling, however, when it looks like they are going to surpass the debt ceiling, they just raise it more. Because there is no limit on how much congress can borrow and the debt ceiling can just be raised, the public debt is in the trillions. The only reason the debt ceiling exists is because people would get angry if they saw in black and white that Congress can borrow with no limit. However, because the debt ceiling can be changed and altered, it has no real authority over how much Congress borrows.

Finally, borrowing money from other nations makes America weaker. Think of it this way: when you owe your friend money, they have the right to hang that over your head until you pay them back. Some friends quietly wait for you to pay them back, while others are a little bit more demanding. The other countries of the world, while they may not be America's 'friends,' are probably the more demanding type given the state of the world's economy. The countries that we owe money to have a bit of power over us. At any given moment, a country like China could demand that we repay them by a certain date and declare war on us if we don't.

While this scenario is dramatic and rather exaggerated, it very well could happen. The one who has the money generally has the power, and while America is known as a world super power, we just don't have the money.

As we can see through these three main areas, it is imperative that Congress set a real limit on how much they can borrow and stick to that limit. Generation after generation will have to pay off the debt with tax money, but that doesn't really do anything as long as the tax money is going to the silly studies and programs we don't need. If we stop spending money on frivolous things, if we stop lying to ourselves about the debt ceiling, and if we pay back the countries we owe money to, the debt will go down tremendously. As Everett Dirksen said, "A billion here, a billion there, pretty soon, you're talking real money." We are talking real money and now we need to take real action to improve the economic situation in America. While we aren't in a recession, the economy isn't great and the citizens of the United States are always extremely critical. However, if we can get rid of the public debt, even the most critical of our nation will have to say that America really is one of the greatest nations on Earth.

 
 

 

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