Tuesday, October 08, 2013

How to Solve the Debt-Ceiling Crisis Forever

Businessweek explains How to Solve the Debt-Ceiling Crisis Forever. I didn't know this...

"Back in 1979, the Democratic House Speaker, Tip O’Neill, handed the unhappy job of lining up votes for a debt-ceiling raise to Representative Richard Gephardt, then a young Democratic congressman from Missouri. Gephardt hated this, and, realizing he’d probably get stuck with it again, consulted the parliamentarian about whether the two votes could be combined. The parliamentarian said they could. Thereafter, whenever the House passed a budget resolution, the debt ceiling was ‘deemed’ raised.

The ‘Gephardt Rule,’ as it became known, lasted until 1995, when the new House Speaker, Newt Gingrich, fresh from the Republican triumph of the 1994 midterms, recognized the same thing that Tea Party Republicans recognize today: The threat of default could be used to extort Democratic concessions. Gingrich abolished the Gephardt Rule, and within the year the government had shut down."

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