Thursday, July 14, 2011

We already were headed for a downgrade because of too much, not too little, debt


So the current debate over a downgrade due to failing to raise the debt limit is a sideshow. The issue is how we put ourselves on a path to lowering our debt, not how we raise the debt level.

Raising the debt limit without a plan to reduce our debt accomplishes nothing.

There is a lot of scare talk regarding the debt negotiations.  There are those who believe that if no agreement is made, that there will be a default.  Not necessarily.  The most likely outcome is a government shutdown of some sort.  Social Security checks will still come, interest on the debt will be paid, essential government services will continue.

If the debt isn't raised, we might actually find out how useless this extra spending really is.  If the sky doesn't fall, we might ask ourselves: Why are we spending so much which accomplishes so little?  I can bet you that the Democrats are more afraid of that than the default scare scenarios that they keep talking about.

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