Thursday, September 26, 2013

People like the debt ceiling and they should.

People like the debt ceiling (although Tyler Cowen doesn't).The debt ceiling is useful precisely because it forces both voters and representatives to at some level confront and resolve the cognitive dissonance between "I want to spend all this money" and "I don't want to be at an unsustainable debt level".

The debt ceiling makes more sense, not less, in light of both behavior economics and public choice lessons.

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