As talks over raising the debt ceiling break down over Democratic demands for tax hikes, government officials and media commentators are trying to scare Americans into believing that without raising the debt ceiling, the Federal government will have to default on its obligations:The talks were aimed at striking a budget deal in hopes of easing the way for Congress to raise the government's $14.29 trillion debt limit. Treasury Department officials say that without additional borrowing authority, the government will run out of cash to pay its bills by Aug. 2. They warn that defaulting on any U.S. obligations could trigger another financial crisis and recession.
But Senator Rand Paul has been saying for months now that this is untrue. Rand Paul argues:
"Our interest payment is about $20 billion a month. Our tax revenue is about $200 billion a month, so we're bringing in (nearly) $200 billion. We've got plenty of money to pay our interest."
Unlike the extreme bickering partisan factions that each say it's our way or a government shut down, Rand Paul argues for a moderate middle path, explaining that the government can continue to pay its obligations with its monthly receivables while responsibly determining which elements of its perpetual bloat should be removed.
Whether or not you are philosophically committed to a government that takes an active role in providing for its citizens' welfare, there can be no denying that the government wastes a LOT of money. Borrowing more in order to subsidize corruption, waste, malfeasance, and corporate lobbying is criminally irresponsible. Instead of borrowing more, the government can spend less without going into default.
Wes Messamore,
Editor in Chief, THL
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