Wolfers explains the debt ceiling

January 19, 2023 One News Page

Justin Wolfers, One News Page: "The person who raises your credit card limit is the credit card company. It's the lender. Speaker McCarthy is part of the government. The government is the borrower. The only choice the borrower makes, and we all face it every month, is the credit card bill comes due, are you going to pay it or not? So if Speaker McCarthy wants the U.S. government to spend less money, he needs to pass bills so we spend less money. But right now, he's got a credit card bill in the mail, and he's just stomping his feet and saying, 'I'm not going to pay it.' This is the part where it's a pretty good analogy. Most of our viewers know, that's a pretty bad idea. It's a good way of getting your credit cut off, raising interest rates. And what that means is if the U.S. government pays higher interest, you and I pay higher taxes."