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We haven’t always had a debt ceiling

Just as a minor historical note about the debt ceiling, it has been killed off before—for nearly 15 years. Dick Gephardt did it in 1979:

He consulted the parliamentarian. "I asked if there was a way that when we pass the budget [the debt ceiling] can be deemed 'raised' to accommodate the budget people are voting for," Gephardt said. "He said, 'Yeah, we think we can work that out.'"

Thus was born the "Gephardt rule." For a period thereafter, the adoption of the conference report on the budget resolution would trigger the Gephardt rule and "deem to have passed" legislation raising the debt limit to accommodate the spending and revenue levels approved in the budget. Presto! Problem solved.

Unfortunately, anything that can be legislated can also be unlegislated. When Democrats lost their majority in the Gingrich landslide of 1994 the Gephardt rule was quickly abolished. Republican revolutionaries wanted the debt ceiling back as leverage to force spending cuts—including two government shutdowns—on President Clinton. It's been with us ever since.

5 thoughts on “We haven’t always had a debt ceiling

  1. Lounsbury

    That is relatively inaccurate.

    The legal debt ceiling was simply put as mechanically attached to budgeting (logical and clearly better practice). That is not the same thing as your not having a debt ceiling, not by far. It is rationalising an irrational law...

    Had you abolished entirely the law then an new law rather than mere rule revision. Abolition of the Public Debts Act is what you need, not internal rules

  2. lawnorder

    Government shutdowns are NOT the result of hitting the debt ceiling. Government shutdowns are the result of appropriations bills expiring without new appropriations being passed.

  3. MattBallAZ

    What lawnorder said.
    But this really is all about Republicans. This was inevitable when Rs took the House. Even with the 14th Amendment or the coin or premium bonds, they would shut the government down this fall, CRs with 0% growth would have been the best we could get.
    Ever second Dems bitch about Biden, they are doing Republicans' bidding. All that matters is winning elections. Stop bitching - organize.

  4. Jasper_in_Boston

    Unfortunately, anything that can be legislated can also be unlegislated. When Democrats lost their majority in the Gingrich landslide of 1994 the Gephardt rule was quickly abolished.

    This goes for debt ceiling abolition just as much as a parliamentary rule change, provided Republicans have a trifecta. I confidently predict one day (maybe as early as 2025) Democrats will abolish the debt ceiling by law, and then, some future Republican Congress will restore it one year in late December, just before a new Democratic president takes office. Hell, not even getting it declared unconstitutional via the 14th amendment is foolproof, in that no Supreme Court can bind a future Supreme Court.

    As long as America is home to large numbers of anti-government nihilist cranks who think the nation's full faith and credit is something to be trifled with, we'll potentially face these crises.

    Anyway, time to sign up for Mandarin lessons. At least we had a nice run.

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