When the debt ceiling is raised, the place the politicians will go to borrow the money is the U.S. government bond market.
In August, the government is estimated to take in $170 billion in tax receipts and their bills for that month will be $300 billion. Just in August, they will need to go to the bond market and borrow $130 billion.
That means Bill Gates' $50 billion fortune that took him 24 years to accumulate (Microsoft had its first IPO in 1987) could fund the government borrowings (just federal, not state or local) for about 12 days. And that's just what the government borrowed.
If Gates paid all the bills for the federal government, he could do it for only five days and then he would be as broke as the government (tax the rich more, but it will only put a dent in the deficit).
That $130 billion the government is going to borrow in just one month, is $130 billion of capital that the overall bond market won't have available to loan out to young entrepreneurs to start their own business or to expand current businesses, or for someone to borrow to buy a new home or to trade up to a better home.
However, it will be $130 billion that will be doled out by a bunch of bureaucrats who based on their actions, not words, don't care too much about America's long-term economic future. And that means the children's future.
What the young need is quality education so they can compete with a global, educated work force, decent paying jobs, available capital at low-nterest rates, low debt and taxes, strong political leadership, a fair tax system and affordable health care, just to name a few. The Baby Boomers had most of these when they were just starting out, but now, the young are being left the exact opposite.
One of these days, the young, in general, are going to wake up and start asking where is this better life America promised? Furthermore, without an economically strong, young population, who is going to pay for the 75 million Boomer's retirement, including those government pensions? (The Boomers, on average, have saved less than $50,000.)
The U-B is filled with articles about helping the young, but I ask where's the long-term beef? Promises, speeches and IOUs won't put food on the table for very much longer.