US Government Debt Different - Finance Department - University of ...

312The 2011 Debt Limit Impasse: Treasury’s Actions & The Counterfactual – What Might Have Happened if the National Debt Hit the Statutory LimitSpeaker Boehner’s recent comments highlight a potential realityin American politics—that debt limit increases may no longer beroutine. The possibility of future crises underscores the impact of legaluncertainties that surround these issues. As a result, the 2011 debtlimit impasse may properly act as a call for legal clarity, specificallywith regard to the Executive Branch authority to prioritize spendingobligations. While prior debates over the debt limit have beenclouded by disagreements over the legal consequences of inaction, aclear legislative scheme might inform both political leaders and thepublic during future negotiations.