WSJ Forgets GOP Taking Debt Ceiling Hostage


The Wall Street Journal promoted Republican revisionist history portraying previous debt ceiling negotiations as bipartisan, ignoring the Republican obstructionism that led to the 2011 debt ceiling crisis.

If Congress is unable to raise the U.S. debt ceiling -- which allows Congress to pay for past spending -- much of the government will shut down by October 1, and by mid-October, the Treasury Department will lose the ability to pay its debts, thereby hurting the economy. Divisions among House Republicans have stalled efforts to pass the necessary legislation, with many insisting on significant cuts to government spending and delaying President Obama's health care law.

On September 12, the Journal reported Speaker of the House John Boehner's response to the administration's refusal to negotiate on these "nonstarter" proposals, claiming it was a departure from "decades" of previous negotiations that found "bipartisan solutions":

Congress faces a deadline in mid-October to pass legislation that would raise the debt limit. Mr. Obama has said he would refuse to negotiate with Republicans on terms for raising the borrowing limit and that Congress must allow the Treasury to pay for spending already approved by lawmakers.

But Mr. Boehner (R., Ohio) told reporters Thursday that stance was a departure from numerous precedents, in which the White House and Congress agreed to budget changes in exchange for a debt-limit increase.

"For decades, the White House, the Congress have used the debt limit to find bipartisan solutions on the deficit and the debt," Mr. Boehner said, alluding to deficit-reduction deals passed under former presidents Bill Clinton and George H.W. Bush, among others. "So, President Obama is going to have to deal with this, as well."

The Journal failed to note that Boehner's rosy painting of history hid the unprecedented crisis of August 2011 caused by Republican obstructionism. Raising the debt ceiling had been a routine procedure until then, when Republicans held the economy hostage by threatening not to support any increase without equal amounts of spending cuts. Economists at the time cautioned that failing to raise the debt ceiling would be catastrophic for the U.S. and world economies, and a June 2011 letter to congressional leaders signed by 235 prominent economists warned:

Failure to increase the debt limit sufficiently to accommodate existing U.S. laws and obligations also could undermine trust in the full faith and credit of the United States government, with potentially grave long-term consequences. This loss of trust could translate into higher interest rates not only for the federal government, but also for U.S. businesses and consumers, causing all to pay higher prices for credit. Economic growth and jobs would suffer as a result.

Obama ultimately signed a bill that averted the crisis, ending the "bitter partisan stalemate that had threatened to plunge the nation into default and destabilize the world economy."

Posted In
Economy, Government, The House of Representatives
Wall Street Journal
The Wall Street Journal
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