When you're 14 trillion dollars in debt, the last thing you should do is borrow more. But that's exactly what U.S. Treasury Secretary Tim Geithner says the government must be allowed to do. He says – given our current spending patterns -- we'll reach our current 14.3 trillion dollar debt limit no later than May. And that unless Congress allows the debt to go even higher, the nation will go into default.
I understand that going into default would cause more economic pain than most Americans are prepared to endure. But is merely raising the debt limit the prudent response?
While I never like negotiating at gunpoint, I'm afraid the havoc that would be wreaked by a default is enough of a real threat to make it necessary to raise the limit. However, any such action should be strictly tied to specific, significant and immediate spending cuts – including a requirement for any future expenditures by Congress to be offset by equal reductions in government spending.
Let's face it -- we're too far gone to keep from reaching the current debt limit whether we raise it or not. But to get out of any hole, we must first stop digging. And if we hope to make any progress toward fiscal sanity, that concept must be the cornerstone of any debt limit legislation.
What do you think we should do about the debt? Call and let us know.
I'm Bill Lamb, and that's my…Point of View.