President Barack Obama has made himself clear: he will not sign a debt ceiling bill unless it’s “clean,” meaning that he will not negotiate.
Under President Obama, the total federal debt increased by 57 percent. Once he took oath, the federal debt stood at $10.6 trillion. The total debt now stands at $16.7 trillion. Under President George W. Bush, the total federal debt rose 38 percent. President Bill Clinton’s term saw a 32 percent increase of the total federal debt.
Due to the current federal debt, critics of this administration’s pursue of an increase in the debt limit have been pressuring lawmakers to ensure that Congress does not allow for an increase. Expanding the amount of money the U.S. can borrow means one thing in the long run: that the money we now have will not be spent on useful programs that need the funding, and that more money will be necessary in order to have some, if any, of what we owe paid back.
Reason’s Nick Gillespie points out in this video for Reason TV that because of the significant growth of the federal government’s net interest payments, the government will have to find a way to obtain more revenue in order to pay some of its debt, which will inevitably lead to a reduction of private investment in productive resources, stifling the economy and keeping potential business owners from dedicating themselves to their ventures.