According to recent estimates, the Treasury Department could run out of cash in September. Eventually, Congress will either raise the debt limit, face another government shutdown, or allow the United States to default on its debt. A temporary fix or even a government shutdown is likely, but not a default – yet. Applying public choice theory to Congress’ habitual debt limit increases show that lawmakers, in their quest to get reelected, want to give constituents more benefits for less taxes, leading to deficit spending. In the Washington Examiner, Bruce Yandle explains that members of Congress use artificially created budget crises to add more pork barrel spending into bills that will not get enough time
for debate.
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