Debate Over Raising the Debt Ceiling

Debate Over Raising the Debt Ceiling

U.S. credit rating on the line. The upcoming vote to raise the U.S. debt limit has become a key bargaining chip in the larger budget debate. Political divisions and consequences of prolonged negotiations.

The nation’s next big budget battle is shaping up over the debt ceiling. Earlier this week, the ratings agency Standard & Poor’s changed its outlook for U.S. government debt from stable to negative. And when it did, it added new urgency to the debate. The U.S. has a current debt limit of $14.3 trillion. Economists predict that number will be reached in mid-May. The White House wants Congress to increase the limit immediately. But that support may come with a high price tag. House Majority Leader Eric Cantor says Republicans want to see serious reforms. We look at the political debate over raising the debt ceiling and its economic repercussions.

Guests

David Smick

global macroeconomic advisor, founder and editor of The International Economy magazine and author of The World Is Curved: Hidden Dangers to the Global Economy

John Harwood

chief Washington correspondent for CNBC; reporter, "The New York Times;" coauthor with Jerry Seib of "Pennsylvania Avenue, Profiles in Backroom Power"

Dean Baker

co-director of the Center for Economic and Policy Research and author of "False Profits: Recovering from the Bubble Economy"

John Feehery

president of of Communications and Director of Government Affairs for Quinn Gillespie Communications, and a former congressional staffer for Bob Michel, Tom DeLay, and Denny Hastert

Mary Miller

assistant Treasury Secretary for Financial Markets

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