Congress increases U.S. debt limit

The debt limit of the United States has been increased for the third time in four years, which some say ensures that the deficit will continue to soar.

Congress passed legislation Thursday which raises the government's borrowing limit by $800 billion, and President Bush signed the bill into law Friday.

The vote in Congress was 208-204, mostly along party lines with Democrats opposing the legislation.

But some Republicans, like Rep. Walter Jones, R-N.C., balked at the hike.

"The government has to do a better job of reducing its spending habits," he said.

Jones argued that the increased spending and subsequent debt increases by the government are irresponsible and costly to the public.

"Every time you grow and expand government programs, there are people like myself who have to pay for it," he said, citing the growth of programs such as Medicare and the No Child Left Behind school accountability efforts.

The current debt limit increase is the third since the Bush administration took power.

According to a report by the Democratic caucus of the House Budget Committee, the debt limit was increased in 2002 by $450 billion and in 2003 by $984 billion, the largest increase in American history.

The debt limit increases have contributed to the current deficit, which is more than $7 trillion.

But not everybody sees these increases as big news.

Jim Barth, an economist at Auburn University, said the debt limit increase is par for the course.

"It's essentially a nonevent," he said. "Historically, it doesn't mean that much because the government does that periodically,"

Barth said some Republicans might be upset because the current administration is piling up a larger bill than the party wanted.

But he said the Democrats' anger is more surprising, given former presidential hopeful Mass. Sen. John Kerry's big plans for his administration.

"It is somewhat ironic that Democrats would be angry over government spending, given the Democratic candidate for president would have increased spending too," he said.

But Michael Donihue, an economics professor at Colby College, said the Republicans have egg on their faces because they talk the talk, but don't walk the walk.

"It is embarrassing because the Republicans find themselves in the position where they are not the fiscally responsible party," he said.

But Donihue said the increase is necessary if the government is going to continue to function.

Many Democrats do not disapprove of the limit increase, but believe future programs should be paid for as they are implemented.

Bridget Lowell, press secretary for Rep. David Price, D-N.C., said the congressman supports the pay-as-you-go approach to government projects.

"(Price) feels we are shortchanging key priorities while at the same time doing damage to the nation's economy," Lowell said.

Despite the fiscal argument, some consider the discussion about debt increases to be more of a political debate than an economic one.

Barth said there is little substance to the debate.

"There is always a lot of politics going on with these things, rather than substantive issues being raised."

Regardless, some leaders like Rep. Charles Stenholm, D-Texas, believe there is more that needs to be addressed regarding the nation's deficit before spending moves forward.

"Before we approve an increase on debt limit, we need to re-examine the policies that made this debt limit increase necessary," said Ed Lorenzen, legislative director for Stenholm.

Contact the State & National Editor at stntdesk@unc.edu.