Forget economics, forget debt, maybe the president just doesn't understand how money works. In this video via CNS News, the president says some frighteningly uneducated things. We're talking "Are You Smarter Than a 5th Grader?" type things.
CNSNews highlights the following quote;
"Now, this debt ceiling -- I just want to remind people in case you haven't been keeping up -- raising the debt ceiling, which has been done over a hundred times, does not increase our debt; it does not somehow promote profligacy. All it does is it says you got to pay the bills that you've already racked up, Congress. It's a basic function of making sure that the full faith and credit of the United States is preserved."Obama went on to suggest that "the average person" mistakenly thinks that raising the debt ceiling means the U.S. is racking up more debt:"It's always a tough vote because the average person thinks raising the debt ceiling must mean that we're running up our debt, so people don't like to vote on it, and, typically, there's some gamesmanship in terms of making the President's party shoulder the burden of raising the -- taking the vote."
The president could not be more wrong on this.
Technically, if Obama had stopped after saying it does not increase our debt he would be correct. The act of raising the debt ceiling means the government CAN spend more via debt. It has not done so yet. But it will.
Raising the debt ceiling has a perfect track record for promoting profligacy (i.e. reckless wastefulness) in spending. In the same paragraph he claims "it says you've got to pay the bills you've already racked up."
NO, it says you've got to spend more to pay for the promises you've made that you cannot afford to make. It means instead of fixing those problems, the government will just continue to spend more money that it doesn't have, instead of solving the problem of insolvency in the various areas that are causing these debt levels to need to be increased time and again.
That's the very definition of profligacy. Maybe he also doesn't understand the meaning of that word. The president continues to act as if debt is meaningless, and has no impact on the country. Anyone who has ever run up a credit card as a 21 year old knows better.