The debt-ceiling crisis that has been roiling the nation is an absurdity that has no rational basis. It should never have happened, and steps must be taken to prevent it from occurring ever again. For those who think the debt-ceiling mandate is some kind of constitutional or traditional phenomenon ... it is not. For those who think it is a sacrosanct part of American history ... they are wrong.
In fact, it dates from 1917, has no basis as a constitutional component and is a bit of an anachronism in terms of other industrialized nations. Few, if any, have such an arbitrary limit on debt, and most have systems that are far more effective and less dangerous.
And why is our debt-ceiling law dangerous? Precisely because of what has just happened (and why). It was not used to initiate rational fiscal policy, but to hold hostage the nation's legitimate debts to a far-right agenda, mostly regarding taxation policy.
And as long as it is on the books, it is a continuing potential threat to the full faith and credit of the United States.
Moreover, the debt-ceiling limit is largely irrelevant, because until now it has always been voted and extended without serious confrontation and little discussion. That includes 30 times since 1980, and virtually every year that President George W. Bush was in office.
The statutory limit on federal debt began with the Second Liberty Bond Act of 1917, which helped finance the United States' entry into World War I. By allowing the Treasury to issue long-term Liberty Bonds, along with a debt ceiling, the federal government held down its interest costs.
The government was still allowed to issue bonds for specific projects (like the Panama Canal) until 1939, when Congress eliminated separate limits on bonds and on other types of debt, which created the first aggregate limit that covered nearly all public debt.
Since then, however, the statutory debt limit was pretty much irrelevant and on cruise control -- until it became a danger to our country this year.