How To Negotiate A Clean Increase In the Debt Ceiling
So in 1978, Dick Gephardt quite sensibly tied the debt ceiling to the budget: Once Congress decided how much we were going to tax, spend and borrow, the Treasury Department was authorized to carry out those instructions. In 1995, House Republicans wanted leverage over President Bill Clinton, so they brought the debt ceiling back. It’s easier to get people to listen to you if you threaten to destroy their credit rating if they don’t. And now, in 2011, they’re doing it again.
Indeed they are. Here is how Clinton handled their threats in 1995:
Clinton Vetoes Borrowing Bill -- Government Shutdown Nears As Rhetoric Continues To Roil
WASHINGTON - With the clock ticking toward a midnight shutdown, President Clinton vetoed a temporary borrowing bill today and prepared to close most government operations in a jolting political fight with Congress. [. . .] "This is not the time or the place for them to backdoor their budget proposals," [Clinton] said.
After raising taxes on the rich in 1993 and standing up to the GOP on the debt ceiling in 1995, President Clinton won reelection in 1996 in a landslide.
Speaking for me only
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