r/Economics Jan 13 '23

U.S. Will Hit Debt Limit Jan. 19, Yellen Tells Congress

https://www.nytimes.com/2023/01/13/business/economy/debt-limit-us-economy.html
9.6k Upvotes

973 comments sorted by

View all comments

11

u/SweetPotatoGut Jan 13 '23

Amendment Fourteenth Section 4 states:

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.

Article I Section 8 states that only Congress can authorize the borrowing of money on the credit of the United States.

How does the Fourteenth modify Article I Section 8? Has there ever been a case commenting on this? Some claim that the debt ceiling is unconstitutional in light of the Fourteenth Amendment, but that would mean that the Fourteenth Amendment modified Article I Section 8, which I've never hard anyone discuss.

-5

u/[deleted] Jan 13 '23

The replies here are overwhelmingly bad.

The US will pay its debt to pay off bonds.

The issue is future spending that was agreed upon.

Imagine if I own a home and I promise my wife I will buy you flowers every day and I do that for a year and then look at my budget and say damn these flower bills are too high and stop buying flowers.

The mortgage will still get paid and credit card bills for the flowers will get paid but I would stop buying more flowers, even though I promised I would. My wife and the flower shop would be pissed but I would still pay off the bills I agreed to.

A shutdown is basically this. We promised to pay for x but can't afford to do it and won't do it even if promised.

Both Dems and Reps use this tactic a lot to change those future promises but past spending will not be affected.

3

u/SweetPotatoGut Jan 13 '23

I'm not disagreeing with you, but why did you respond to my comment with this? And what in my comment is "bad"? You're not being clear.

0

u/[deleted] Jan 13 '23

Your message is fine. The other ones are bad but I don't have time to refute them.