As James Hamilton explains, the position of not raising the debt limit is self-contradictory. The debt reflects what has been spent in the past and not paid for. Any time there is a deficit then it is axiomatic that the debt must go up. Playing chicken with the credit rating of the US government is dumb, dumb, dumb.
http://www.econbrowser.com/archives/2011/07/debt_ceiling_op.html
Sounds like America is more like a corporation than a country. Except there's no way to sell my shares.
ReplyDeleteI could move to New Zealand or some other more"free" country.
I understand it would be backwards to not raise the debt ceiling, but why as a citizen, an investor, should I keep paying into things (i.e. entitlements, social security, etc.) I couldn't afford nor really wanted in the first place?
I suppose that's the nature of the representative republic, much to my chagrin.