Does Raising the “Debt Ceiling” Create New Debt? Yes – and No.

There’s been *so* much talk about the government shutdown, raising debt ceilings, etc. lately and in those conversations many Obamanites claim that “Raising the debt ceiling does not create new debt. It only allows for Congress to pay off existing debt”


They’re only repeating what Obama has said without thinking logically about it at all. Obama said

“Raising the debt ceiling is a lousy name, which is why members of Congress in both parties don’t like to vote on it, because it makes you vulnerable in political campaigns. However, raising the debt ceiling “does not increase our debt. It does not grow our deficits. It does not allow for a single dime of increased spending. All it does is allow the Treasury Department to pay for what Congress has already spent.”

This makes *NO* sense to me. Plus, Obama once voted against raising the debt ceiling while serving in the Senate. So, I did what I always do when something doesn’t make sense -or- when I need a laugh. I called my dad.

Here’s what he said “Let’s say you live in a home that has a septic system. For some reason, the system is backed up and is filling your house with -you-know-what. Eventually, your entire house is filled – completely.”

Me – “Okay…”

Daddy – “So, do you want to raise the ceiling of your house, or get the crap out?”

Me – *Laughing* – “Okay, I see your point… If I raise the ceiling, I’ve not added any ‘new’ crap, just given it room to move around, but it seems to me that if I haven’t fixed it and the septic tank is *still* backing up… the amount of space I raised the ceiling is going to just fill up as well.”

Daddy – “Exactly”

My conclusion?

Obama isn’t ‘lying’ when he says that the act of raising the ceiling, in and of itself, doesn’t create new debt, but … he’s talking out both sides of his mouth when he says it doesn’t allow for increased spending. Actually, he’s just lying. It very much allows for more spending. That’s the whole point.

Once again, I presented my sons with this scenario. I drew a house, drew the septic tank backing up and filling the house. Then I said I was going to fix it. I extended the sides of the house up the paper, raising the ‘ceiling’, adding a new roof.

My 10 year old looked at me, one eyebrow raised, and said “That’s not fixing anything. Now it’s just going to fill up to the new ceiling…”

I rest my case.

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