Still Living Dangerously With a Debt Ceiling
Congress really needs to do away with an arcane tripwire that might one day blow up the economy.
As part of a bipartisan deal on July 25, 2019, the House of Representatives passed legislation to raise the debt ceiling, as it has done more than 60 times before. (The Senate was expected to pass the bill Wednesday or Thursday.) It's good that we have averted a crisis, but this obscures the fact that Congress keeps laying tripwire for itself that causes ongoing problems for investors and raises the cost of borrowing. In short, the debt-ceiling system is a relic, does not force fiscal responsibility, and might one day trigger a major financial crisis.
Before World War I, every time the federal government needed to borrow more money, Congress approved the debt issuance. During the war, instead of Congress approving new bonds for the war effort, it told the Treasury to just borrow what it needed for different types of debt instruments, up to a limit, and come back and get permission if it needed to borrow more. Later, in 1941, Congress further streamlined the debt ceiling to include all government debt under one limit.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.