Keeping it Simple: Fareed Zakaria Explains the Debt Ceiling

Fareed's Take: The damage is already done!

"The vote to have higher expenditures than tax revenues is - in effect - a vote to borrow money to cover the difference. And in the United States, Congress - including Republicans - voted for a budget in which expenditures exceeded tax revenues.

The logical consequence of that budget - again, passed by Republicans and Democrats, is that the government has to make up the difference by borrowing. To come at it now after the budget has been passed is like getting your Visa bill and calling up the company to say, 'Actually we don't want to buy all that stuff we bought.'


That's not how it works. First you pay the bill, then you can change your spending habits."

Read full article on CNN

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