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“We had a very good meeting with Nancy Pelosi and Chuck Schumer,” President Trump told reporters on Wednesday while boarding Air Force One, preparing to travel to North Dakota. “We agreed to a three-month extension on debt ceiling, which they consider to be sacred…very important…always we’ll agree on debt ceiling automatically because of the importance of it.” Trump has demonstrated himself to be a President who wants to get things done, despite Republican Party’s opposition.

President Donald Trump agreed to support a Hurricane Harvey relief bill packaged with a short-term debt ceiling extension and government funding. By passing the package, Congress would avoid two politically contentious September deadlines, for now. Both needs to be done, and therefore this move represents good governing.

Trump surprised his party’s leaders when he cut a deal with Democratic congressional leaders, Nancy Pelosi and Chuck Schumer, on a short-term plan to fund the government and raise its borrowing limit this month. During his White House meeting with both parties’ congressional leaders, Trump made his position clear to Senate Majority Leader Charles E. Schumer (D-N.Y.) and House Minority Leader Nancy Pelosi (D-CA).

 

This move may not have gained much approval from the Republicans for Trump, but he has certainly won much approval from the Democrats and from the Independents. To be inclusive, being bipartisan, and to focus on what is good for the nation should be the goal of all Presidential and Congressional decisions. This move resembles that of the Great Communicator former President Ronald Reagan, who frequently had Democrats over at the White House to lobby them for bipartisan approval and support of various measures. It would not surprise me that Trump may have future collaborations with the Democrats, for Trump wants to be seen as a president who “Gets things done” rather than being overly concerned with the support from the Republican Party. It would be  fantastic if Trump will be the president who ends partisanship.

To help better understand the significance of this debt ceiling extension, I would like to invite you all to become familiar with the history of United States Debt Ceiling (<–click):

Excerpt from wikipedia, below:

The United States debt ceiling or debt limit is a legislative limit on the amount of national debt that can be issued by the US Treasury, thus limiting how much money the federal government may borrow. The debt ceiling is an aggregate figure which applies to the gross debt, which includes debt in the hands of the public and in intra-government accounts. (About 0.5% of debt is not covered by the ceiling.) Because expenditures are authorized by separate legislation, the debt ceiling does not directly limit government deficits. In effect, it can only restrain the Treasury from paying for expenditures and other financial obligations after the limit has been reached, but which have already been approved (in the budget) and appropriated.

When the debt ceiling is actually reached without an increase in the limit having been enacted, Treasury will need to resort to “extraordinary measures” to temporarily finance government expenditures and obligations until a resolution can be reached. The Treasury has never reached the point of exhausting extraordinary measures, resulting in default, although on some occasions, Congress appeared like it would allow a default to take place. If this situation were to occur, it is unclear whether Treasury would be able to prioritize payments on debt to avoid a default on its bond obligations, but it would at least have to default on some of its non-bond payment obligations. A protracted default could trigger a variety of economic problems including a financial crisis, and a decline in output that would put the country into an economic recession.

Management of the United States public debt is an important part of the macroeconomics of the United States economy and finance system, and the debt ceiling is a constraint on the executive’s ability to manage the U.S. economy. There is debate, however, on how the U.S. economy should be managed, and whether a debt ceiling is an appropriate mechanism for restraining government spending.

Photographed, gathered, written, and posted by Windermere Sun-Susan Sun Nunamaker
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