We estimated that delays in raising the debt limit in 2011 led to an increase in Treasury’s borrowing costs of about $1.3 billion in fiscal year 2011. However, this does not account for the multiyear effects on increased costs for Treasury securities that will remain outstanding after fiscal year 2011. Further, managing federal debt as such delays occurred was complex, time consuming, and technically challenging. According to Treasury officials, these events diverted Treasury’s staff away from other important cash and debt management responsibilities as well as staff development and program oversight activities.
But of course GOP Senate candidate Tom Smith is saying that he won’t vote for another debt ceiling increase. It’s just going to be debt ceiling brinksmanship forever and ever, unless Congress scraps the debt ceiling altogether.