Don’t fear the debt limit

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Whenever the establishment left and right agrees on something, expect a big assault on our democracy. That is the case with the emerging consensus that the debt ceiling should be rescinded as part of the “fiscal cliff” negotiations so that spending hawks can’t later hold the economy hostage to extract spending cuts. But there are few external market checks on America’s profligacy. Without strong internal political checks, it might well spend itself into oblivion.

America’s total $16 trillion accumulated debt represents 100 percent of the nation’s gross domestic product. Add in its $85-plus trillion in unfunded pension and health care liabilities, and the debt shoots up to 550 percent — only marginally better than France’s. Every man, woman and child in America is currently on the hook for $190,000.

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