January 17, 2013
America will not default on its debt absent a “clean” debt limit increase, Heritage Foundation President-Elect Jim DeMint said Wednesday on Fox News.
Instead, we need to couple a debt limit increase with spending cuts and other reforms that put us on a path to a balanced budget, he said.
“The only way the federal government would default on its debt in the event the debt ceiling remains unchanged is for the Treasury to choose to default—an utterly implausible eventuality,” Heritage expert J.D. Foster explains.
In addition, raising the debt limit without spending reforms would be irresponsible, Heritage Vice President Derrick Morgan writes:
Would you give your spendthrift teenager a higher limit on his credit card if he did not have a plan to live within his means? No way! Instead of helping, you’d be giving that irresponsible teen more borrowed money to spend, making his situation worse. . .
Increasing the debt ceiling without reforms would be an unfortunate step toward a Greece-like meltdown at some point. Thankfully, the debt ceiling debate gives Washington policymakers a chance to get to much happier outcome: a balanced budget over time.
What do you think we should do about the debt limit?