Wednesday, May 24, 2023

Resolving the 2023 Debt Ceiling impasse

The argument about the Federal Debt Ceiling is that the United States will go bankrupt if the debt ceiling is not raised.
There is an easy way around this.
Pres. Biden should issue an Executive Order that the Federal dollars sent to any State should not exceed the number of dollars the Federal Government receives from that State.
The Federal Government would decide which recipients and how much they receive within that State.
A few states, including California, would only be marginally inconvenienced because they do not have a large Balance of Payments difference.
But many states, mostly ‘red’ in politics, would be greatly inconvenienced.
For instance, in the last reporting period*, Kentucky received $3.41 for every dollar sent to the U.S. on a per capita basis.
The people and the states should be informed that full payments will be restored once the Debt Ceiling is raised.

Sent to Mercury News     ca. 05/18/23
Sent to NY Times            05/21/23

*Rockefeller Institute of Government, Balance of Payments report, March 2023, p. 17

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