Labor & Economy
Debt Ceiling Talk from Congress’s Crazy Corner

“I would dispel the rumor that is going around that you hear on every newscast, that if we don’t raise the debt ceiling, we will default on our debt,” says Senator Tom Coburn (R-OK). “We won’t. We’ll continue to pay our interest.”
This is crazy talk. While the Treasury Department could prioritize interest payments after October 17 – the day the Treasury Department says it no longer has legal authority to pay the nation’s debts – and not pay Social Security and Medicare, this would buy a few days at most.
Meanwhile, interest rates will soar, stock prices will plummet, the global economy will begin spiraling downward, and millions of Americans wouldn’t receive their Social Security and Medicare.
So why are Republicans talking like this? Because they want to sound as if they’re willing to blow up the economy if they don’t get their way. A crazy person with a bomb is much scarier than someone holding a bomb who looks and acts reasonable. Sounding crazy is part of the Republican bargaining strategy.
But the President and the Democrats must not give in.
If we get to October 17th and the Republicans are still holding the nation hostage, the President has only one option: He must ignore the debt ceiling and order the Treasury to continue to pay all the nation’s bills.
He should rely on Section 4 of the Fourteenth Amendment to the Constitution, which says the “validity of the public debt of the United States, authorized by law … shall not be questioned.” The debt itself is clearly “authorized by law” because it’s the direct result of laws authorizing the U.S. to spend and to tax. The showdown over the debt ceiling is over payment of the debt, not the legality of the debt itself. Arguably, what the Constitution requires trumps any law governing the debt-ceiling.
If Republicans disagree, let them try to impeach the President. Their polls are already dropping. The latest Washington Post-ABC poll shows 70 percent of the public disapproving of their tactics (65 percent disapproved before the shutdown), while the President’s disapproval remains at 51 percent. An attempted impeachment would reveal to the public just how crazy Republicans have become.
(Robert B. Reich, Chancellor’s Professor of Public Policy at the University of California at Berkeley, was Secretary of Labor in the Clinton administration. This feature, which first appeared on his website, is republished with permission.)

-
Column - State of InequalityJuly 10, 2025
Will Covered California Land on Life Support?
-
Latest NewsJuly 9, 2025
Trump’s FEMA Proposals and Feud With Gavin Newsom Could Devastate California’s Disaster Response
-
Latest NewsJuly 11, 2025
Tortured by the Taliban, Locked Up in the U.S.
-
Striking BackJuly 30, 2025
Private Equity in Hospice Care Spurs Workers to Strike
-
Column - State of InequalityJuly 24, 2025
Reform Refill: Has Scott Wiener Convinced Gov. Newsom to Rein in Prescription Middlemen?
-
Striking BackJuly 18, 2025
Ford-Owned Battery Plant Drags Heels on Union Vote
-
The SlickJuly 21, 2025
On the Navajo Nation, the List of Mystery Wells Continues to Grow
-
Featured VideoJuly 18, 2025
Skater Kid: Behind the Viral Video and Continued Fight for Justice