The Debt Limit Fight

Thursday, February 3rd, 2011 and is filed under Blog

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According to the Obama Administration, if we do not raise the debt limit, we will default and a financial apocalypse will destroy markets and economies (for some great info on this fight, go check out Heritage Action for America’s blog on the subject.)

Oddly enough, they’re not even considering real spending cuts, just window dressing. Pat Toomey is (and again, this is where I will note that the Madison Project endorsed him very early on in 2009) and he has some great ideas on just how we can approach the debt ceiling which he laid out in the Wall Street Journal a few days ago.

While Austan Goolsbee, Obama’s Council of Economic Advisors chairman, is saying things like, “”If we get to the point where you’ve damaged the full faith and credit of the United States, that would be the first default in history caused purely by insanity. I don’t see why anybody’s talking about playing chicken with the debt ceiling,” Pat Toomey is saying:

“The recent surge in spending, both in absolute dollars and as a percentage of our GDP, has driven us to record deficits and an explosion of debt. The growth in discretionary spending has been the most dramatic, but in the future mandatory entitlement spending will be the deficit driver. Congress must address both in order to put the government back on a sustainable fiscal path.

The vote on whether to raise the debt ceiling—and, if so, by how much—is our best opportunity to insist that any increase in our nation’s debt be coupled with concrete steps toward fiscal sanity. Congress should make increasing our debt contingent on immediate cuts in spending and effective reforms of the spending process that helped get us into this mess.

For too many years, Congress has ignored or exacerbated the looming fiscal crisis created by overspending. Last fall’s elections were largely a call to finally deal with this imminent threat, and the vote on the debt ceiling is Congress’s opportunity to begin making real progress. We can do so without jeopardizing the full faith and credit of our country—and we should.”