Is the Debt Ceiling Unconstitutional? What about Default?

Politics
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https://www.cato.org/blog/debt-ceiling-unconstitutional-what-about-default

The author of the above piece steps through the various arguments for and against the President unilaterally raising the debt limit. While the author would very much prefer that the President and Congress deal with this as adults, ultimately, he leaves the door open for the President to act unilaterally under the 14th Amendment.

The first thing we must realize is that the President faces no realistic penalty for taking this action. Impeachment is purely political. Yes, the House would impeach him for “abuse of power”. The Senate would likely either dismiss the charges without trial or acquit the President in short order. In other words, he faces no risk in taking such action.

Most likely, the courts will NOT interfere. As the author indicates, there is nobody with standing to oppose the policy and the courts would likely dismiss any case either for lack of standing or on the political question doctrine.

So no issue with the courts and in any event, if your going to ignore Congress on this, than you can just as easily ignore the courts.

But in the end, all would be good because the author supports the “SHALL NOT BE QUESTIONED” provision as forbidding a default and that in ignoring Congress, the President would actually be complying with the Constitution.

The author would prefer it not come to that.

But it is looking increasingly like the Biden administration will do just that, if a default becomes imminent.

And frankly, faced with two bad options (default or invoking the 14th Amendment), invoking the 14th Amendment is by far the less evil of the two options.

What is interesting is that if the President allowed a default, he would be forced to suspend or cancel spending authorized by Congress, thus opening ANOTHER can of worms. You can’t escape a Constitutional mess either way, but again, unilaterally raising the debt limit is clearly the far lesser of two evils. It preserves the full faith and credit of the United States and prevents the economic catastrophe that would result from a default.

But the article is short and worth the read, as it concisely sets out the argument in logical steps.

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Meanwhile, a related lawsuit.

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The debt ceiling wouldn’t matter if we stopped spending ourselves into oblivion.

7 Likes
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Exactly. Biden is determined not to let that happen. :roll_eyes:

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The debt ceiling problem will never go away as long as law makers see it as the most important aspect of their job is buy votes from a gullible ignorant populace. This is only going to get worse as the Biden Administration continues to flood the country with millions upon millions of impoverished people from all over the world.

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Where do you stand on striking a 30 trillion dollar coin? :wink:

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Not seeing how a federal labor union would have standing.

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Bide has virtually eliminated the deficit:

https://www.msn.com/en-us/news/politics/federal-government-under-biden-runs-928-000-000-000-deficit-in-just-7-months/ar-AA1aUXmS?ocid=msedgntp&cvid=f9fe9342693b4d9a86c276b1037b0cf1&ei=36

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They actually could have standing if a default occurred and were laid off as a result of the default.

Until that actually HAPPENS, they probably don’t have standing.

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I don’t if you were addressing that question to me?

If so, I oppose it as a gimmick.

I personally would just invoke the Fourteenth Amendment and plow through the debt ceiling.

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Both parties have shown little restraint.

When the yearly NDAA passes, it typically does so with heavy bipartisan support and chock full of plenty of goodies for both parties.

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I was, and I figured as much.

I don’t think anybody serious likes it

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Considering the damage that could happen if the debt limit is not raised, I think that is grounds for a state of emergency, don’t you?

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Where does the 14th amendment give the President the right to borrow money without congressional approval?

The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.
14th Amendment

The government hits the debt ceiling, logically the President must stop borrowing and use actual revenue to fund programs.

Of course, given that the Pentagon can’t account for over $2 trillion in assets, spending and borrowing may continue without the approval of congress or the president.

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Who spent the money that went over the debt ceiling?

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No one has spent the money. The question is whether the president is free to borrow without congressional authorization.

The fundamental problem is that the US has been spending way beyond its means for a long time.

Obama complained that Bush’s near doubling of the national debt was “irresponsible and unpatriotic”. Obama then doubled the debt in his two terms. The debt is now well over three times what it was when Obama gave this speech.

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Will need to bookmark this for when Trump is President and wants to finish building the border wall.

Congress no longer has the power of the purse string.

Thanks!

1 Like
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Is it a gimmick when the fed creates money out of nothing?

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Of course it was spent. Presidents sign appropriations but they must get passed through congress first. Maybe congress shouldn’t be able to spend money without considering the debt ceiling first.

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The money has been authorized. It has not been spent.