Another practical way to think about the #debtceiling is as providing a halftime checkup of how budgetary estimates are actually working out, and one that gets triggered sooner the farther the Treasury is falling from those estimates.
If the government is running out of money faster than expected, you WANT that alarm to go off sooner so the situation can be addressed.
Remember, after spending is authorized the Treasury spends it throughout the year even as tax revenues continually come in. The Treasury’s balance changes from day to day based on both flows out and in.
Congress authorizes spending based on estimates of both flows, what projects will cost AND how much will come in over time. That makes federal budgets doubly uncertain.
Should receipts fall far short of estimates, Congress would need to reevaluate as its planning was faulty. The #debtlimit would be triggered more quickly as a warning that couldn’t be legally swept under the rug until it’s too late.
It’s vital that people understand the different roles of the different branches here. People are acting as if it all happens in Congress, but in reality, that’s the other branch of government.
