Do We Need a Debt Limit?

Tuesday, July 19, 2011

We’re exactly two weeks away from the August 2 deadline for lawmakers to raise the nation’s debt ceiling.  If Congress can’t come to an agreement by then, the U.S. may default on its loans, and that could likely mean losing our Aaa bond rating. But with debt ceiling negotiations seemingly at a standstill, Moody’s Investor Service has suggested eliminating the debt ceiling altogether.

Donald Marron, director of the Urban-Brookings Tax Policy Center, endorsed the idea in an op-ed in the Christian Science MonitorLouise Story, finance and Wall Street reporter for our partner, The New York Times, explains why we have a debt ceiling in the first place, and the potential impact of eliminating it.

Guests:

Donald Marron and Louise Story

Produced by:

Posey Gruener

Comments [1]

listener

Isn't the ultimate debt limit when our "puritanical" creditors stop the money because they want to be paid back?

Jul. 19 2011 09:18 AM

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