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The debate over the U.S. debt-ceiling returns to Capitol Hill after President Barack Obama requested to increase the country's spending limit by $1.2 trillion.
But this comes as no surprise. As part of the deal to prevent a default on the country's debt last year, the U.S. congress agreed to raise the debt limit by $2.1 trillion in three steps. The first $500 billion increase came in August and another $400 billion increase came in September.
The House of Representatives, led by a Republican majority, is set to vote on a resolution to disapprove of the increase as soon as today. The Democrat-led Senate will vote next week when it returns to session.
But the votes are mostly symbolic because under the legislation passed on Aug. 2, Obama can veto any disapproval that should arise from either chamber.
Legislative maneuvers can address issues, for now. But "in the long-term, the government's budgetary situation is really very bad," says former Federal Reserve economist David Barker. "If government continues to grow and if more and more promises continue to be made I think there is a possibility of collapse because those promises are just not sustainable."
The national debt, as of January 11, is $15.24 trillion, according to the U.S. Treasury Department. The deficit in fiscal 2011 was $1.3 trillion and in September the White House budget office foretasted the deficit in fiscal 2012 to be $956 billion.
"At some point the government will have to completely reinvent itself or will not be able to meet its obligations," says Barker, who is also the author of the new book Welcome to Free America, in which he envisions an America where no political solutions have been found to deal with the country's debt and as a result the government has fallen and private free-markets have prevailed.
Welcome to Free America: A Life Without Government
In the book Barker paints a possible future of what life would be like without government on every level.
In the short-term the country would face calamity and chaos, Barker tells The Daily Ticker's Aaron Task in the accompanying clip. But eventually free-market institutions would build up to provide the services once provided by the government such as schools, roads, medical benefits and security.
"The conclusion I want to get across is that society could work," Barker says, adding that he thinks that after all the transition costs, the economy would actually "boom."
Do you think America could thrive without a formal government? Tell us what you think in the comments below or on our Facebook page!


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