The Hysteric Audacity of Debt
In case you were not keeping tabs, our national debt is approaching $14.1 trillion. Fortunately, some conservative House members are paying attention, and they met this weekend to discuss how to rein in spending. Failure to do so will leave our children and grandchildren with an unfair and economically crippling debt.
Ironically, the current administration does not seem to believe our nation’s debt is a threat to our country. Instead, the Bureau of Public Debt lauds the virtue of debt, by quoting Alexander Hamilton.
If Hamilton were to examine the federal budget, he would be shocked at many of the expenditures. Will $6.5 billion of corporate energy pork or $25 billion to maintain vacant federal buildings give us liberty?
Of course not, but that appears to be beside the point.
Instead, the Obama administration wants a blank check to continue their unchecked spending. On January 6, Treasury Secretary Geithner urged Congress to raise the debt limit soon. He cautioned that failure to raise the debt limit would cause the US default, putting the full faith and credit of the US government at risk.
The Heritage Foundation pointed out that is not necessarily true:
Both immediately and long after it reaches the debt limit, the government would have far more than enough revenue coming in that the Secretary of the Treasury could use to pay interest on the debt. Nor would preserving the current debt limit put at risk the full faith and credit of the United States government, as the President’s chief economic adviser has claimed. The government would continue to pay net interest as it comes due.
In an effort to reaffirm this position for Secretary Geithner, Senator Pat Toomey (R-PA) and Representative Tom McClintock (R-CA) have introduced the Full Faith and Credit Act (S.163 and H.R.421). The bill would simply “require that the Government prioritize all obligations on the debt held by the public in the event that the debt limit is reached.”
It’s short, simple and undercuts one of the main arguments being advanced by a hysteric administration, determined to continue their pattern of reckless spending. Keep in mind that this administration took an alarming $10 trillion debt and turned it into a $14 trillion debt in just two years.
Toomey-McClintock is a solid first step in what many expect to be a long, hyperbolic fight to rein in spending. As we’ve said before, Congress should use the opportunity presented by the vote to get transformational changes which will set our country back on the path towards prosperity.