Debt Ceiling Standoff Does Not Address Real Factors in Debt Crisis, Economists Say

News Analysis
The dramatic showdown between the Biden administration and the new GOP majority in the House of Representatives over the federal debt ceiling is the latest manifestation of an unsustainable fiscal model, in which the U.S. government indulges in discretionary as well as mandatory spending far beyond its means, and if the two sides do reach compromise and avert a default on debt payments, it will be a temporary stalling action rather than a solution to an escalating crisis.
That’s the view of an economist, Gary Wolfram, who took part in past clashes over the debt limit as chief of staff to then-Rep. Nick Smith (R-Mich.), who served in Congress from 1993 to 2005, during the administrations of Presidents Bill Clinton and George W. Bush, respectively….}