The Congressional Budget Office on the uselessness of the debt ceiling
By Ezra Klein,
They are not impressed (pdf):
By itself, setting a limit on the debt is an ineffective means of controlling deficits because the decisions that necessitate borrowing are made through other legislative actions. By the time an increase in the debt ceiling comes up for approval, it is too late to avoid paying the government’s pending bills without incurring serious negative consequences.
It’s worth being risk averse when it comes to causing unnecessary financial crises which might end with the United States of America in a permanently weaker economic position. The debt ceiling is an unnecessary and dangerous anachronism that mainly exists to let the two parties beat each other over the head. It’s long past time to get rid of it.