The fundamental problem with the GOP position on the debt ceiling is that most of them can’t possibly want to win.
In other words, they want to use the debt ceiling as “leverage” to force spending cuts, and yet if they actually went through with the treat not to raise the debt ceiling, it could trigger a catastrophic default. There’s a certain untenability to that position.
But they have a plan. Prior to the debt ceiling fight, certain GOPers are pushing for a bill that would force the Treasury to prioritise debt payments ahead of all other forms of spending. Under such a scenario, the debt ceiling could be held steady, and the Treasury could easily pay its debts, by virtue of the fact that tax revenues are way larger than interest payments. Of course, domestic spending would be curtailed sharply, but it wouldn’t imperil the credit rating of the United States.
Now the question is… would Democrats support this bill? If they do, they’ll make the GOP’s job much easier in the fight, because they’ll no longer be on the side risking a default. Very shrewd.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.