Well, the debt issue is not merely a debtor/creditor issues by any means.
The Fed reserve must print more money in order to fund operations.
Once more money is printed, the wealth of the nation stays constant, and therefore the value of the dollar decreases.
When the dollar decreases in value, prices go up. When prices go up, while wages and salaries remain constant (hyperinflation), the ability for constituents to pay for commodities decreases, which is not desirable for the economy or the individual. Thus, to supplement this loss in ability, the Fed prints off more money, hands it to the agencies after Congress delegates funds (or allows for a continuing resolution). Therefore it is in the best interest of the affluent and impoverished alike to have a balanced budget; in order to do so, programs and agencies need to be cut. Cutting programs, of course, causes the general public to become upset, since they do not understand the long-term risks of continued deficit spending, and how in the short-term, it is decreasing their wages and salaries as it relates to inflated prices.Thus, democratic institutions are structured in a way that inhibit the best governance.
The President has, recently allowed for discussion with fiscal conservatives on the matter, which is great, but it has taken him four years+ to begin compromising. So, the debt ceiling is a bit arbitrary in the quantity it was set to, however, the underlying idea is not a mere frivolous self-inflicting wound. That is not to say all funding for programs should be eliminated or cut, since some programs may help bolster the economy. Though, entitlement spending without a doubt must be cut in order to balance the budget, and actually allow for impoverished people to be able to work and sustain themselves independently. For those who cannot be self-reliant, such as those with SEVERE chronic illnesses and certain cognitive impairments, entitlements should be reserved since they cannot sustain themselves independently without entitlements.
