Some economists say it’s an unnecessary ritual. If Congress wants to keep better watch on the national debt, it can do so by other means. The legislators can easily view reports by their own accounting experts (the Congressional Budget Office) to see estimates of how their tax-and-spending decisions will affect total debt.
Other finance experts say the cap can serve a purpose, nudging lawmakers to focus periodically on the long-term consequences of their fiscal habits.
Sometimes lawmakers negotiate over the debt cap, linking a hike to efforts at deficit reduction or other budgetary reforms. But it can be dangerous for the economy if the process leads over a cliff toward a possible default by the Treasury on US obligations.
