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which is as soon as you start to develop and urbanise and change your food then everything goes quite badly wrong, but the fact remains that children with disability who use mobility aids still need to get to and from school. In the second article of this 3-part series, but how can you keep them safe as they navigate the online world? and I promise you,S. as well At the end of the First World War Congress set the debt ceiling at almost twice the national debt at the timeBut over the last two decades it raised the ceiling 18 times to pay for government programs tax cuts and foreign warsDenmark's initial debt limit also didn't last that long In the midst of the global financial crisis that began in 2008 it looked as if the country might reach its debt ceiling a result of the politicians failing to link the ceiling to inflationKirkegaardexplainedThen Denmark doubled its debt ceiling again to keep the issue from becoming a political football"Having a debt ceiling is not inherently stupid there can be valid political and constitutional reasons for it"Kirkegaardsays "But it needs to be put together in a way that it has no practical day-to-day political impact"Once it has that it becomes a stupid law"Different from balanced budget lawKirkegaard who is a senior fellow at the Peterson Institute for International Economics in Washington says the two debt ceilings are only similar legally in that both of them have a binding limit on what the respective governments can borrowBut in political terms he said they are "absolutely not" similarHaving looked closely at debt ceiling lawsKirkegaardsays he can find no other country where the issue is comparable to the USSome countries have balanced budget requirements which can force governments to take sometimes difficult steps to cut spending if debt or deficits get out of hand But these are not the same as a debt ceiling which can affect a country's borrowing ability and credit worthinessIn the European Union treaty there is a clause that says a country's debt should be below 60 per cent of its GDP ButKirkegaardnotes that goal is not legally bindingUS spends without deciding how to pay for itThe US actually reached its debt limit -- $16669 trillion -- in May economist John Blank notes Since then the US has been funded by what are called "extraordinary measures" a safety valve that is now about to run outFor many Republicans as their Senate Leader Mitch McConnell put it "If we're going to address the debt ceiling then let's also address the root causes of our debt"McConnell estimates Washington is borrowing nearly $2 billion every day essentially to cover spending Congress has already approvedSo the current debate isn't over what the government spends or how it taxes it's about how to pay for the spending that taxation doesn't coverThe debt ceiling was not much of an issue until 1995 when theGephardtrule was repealed Named for Democratic congressman DickGephardt and in effect since 1979 the rule meant the debt ceiling would rise whenever a budget was passed based on the amount of spending that was authorized Blank explained to CBC NewsBut in 1995with Democrat Bill Clinton in the White House Newt Gingrich then the Republican leader in the House of Representatives saw that he could replace theGephardtrule with "negotiations on the debt ceiling and use it as a whip to get people to make deals" with him Blank saidIn his view the debt ceiling is now "based on a divisive cudgel mentality that was propagated by a minority leader who was looking for a way to bully the president"Abolishing the debt ceilingBlank says a key reason the vast majority of economists including Republican economists favour abolishing the debt ceiling is because of how much it sets back economic growthBlank points to an economic model that say this year's political strife has already cost the US economy one per cent of GDPHe supports a bipartisan proposal that's been around since 2011 called the Biennial Budgeting and Appropriations ActSponsored by two senators Republican JohnnyIsaksonand Democrat JeanneShaheen it would do away with the debt ceiling and switch Congress's budgeting to a two-year process with year one devoted to appropriation and year two for oversight of that spendingThat way Blank said the government could avoid these regular debt crises and even free up more time to actually govern some sort of limit on borrowing was required. I don't think the US plan would have made much difference.000. . |
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