Don't lift ceiling
Let's say you are the executive branch of the government. You've told the American people you will spend $100 on your workers. Remember, of course, many of these bureaucrats were hired in the last few years and have little tenure. They may be working for government agencies that regulate, control, enforce mandates and hamstring private businesses.
Receipts from taxpayers bring in $80. You plan to borrow the other $20 and pay off your capricious promise of paying out $100.
Some old law gets in your way, however. The debt ceiling must be formally increased to allow you to borrow the $20. The legislative branch, a branch equal to the executive branch, decides not to increase the debt ceiling at all. "No deal, Mr. Big Government," says our Congress. You have to operate on $80.
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Don't you now have to lay off or terminate $20 worth of non-essential employees? Or, they could cut their pay and stay employed, but then they'd still be in their offices regulating and hamstringing private businesses.
It seems the problem is solved if Congress simply never raises the debt limit again. All of a sudden, we have a version of a balanced budget. We service the existing debt, then run this bloated government on the money we have left. We show small businesses that we mean to get government's hands out of our private economy, and the economy should start back upward.
Corporations can help defuse
What too few people seem to realize is that a failure to increase the debt ceiling is tantamount to launching a few dozen ICBMs into the atmosphere, ensuring they will land first at targets of our infrastructure and then toward major industrialized nations about the globe.
While the impact will not have the immediate horror of radioactive rubble and massive casualties, the effects other than that will be nearly the same.
It won't be another depression, it will be worst than that. It will be taking a country of robust resources (a superpower) and diminishing it into something marginally better than the Dark Ages. It will be more than a tax on everyone; it will be the outright dissolution of our economy. There should not be any political posturing about this. No one wants to kick the can down the road until it goes over a cliff.
The only viable solution is to have a balanced approach of deep non-infrastructure cuts and revenue building — by removing the Bush-era tax cuts that in part sent us into this descending spiral — and closing or reforming all tax loopholes — which allow corporations to bilk the country of what is needed in order to sustain their own corporate girth.
We bailed them out with our money. Don't you think a superfund, made of their money, ought to be there to bail them out the next time (and there will be a next time without regulations to keep them in check)?
McConnell plan was right
Sen. Mitch McConnell presented a common-sense plan to keep the United States from defaulting on its obligations.
McConnell's plan would have given the president the ability to raise the debt ceiling in three installments through 2012, unless two-thirds of the Congress voted to block the increases.
McConnell hoped to couple large reductions in federal spending to these debt-ceiling increases. In this manner, citizens at least know what the president is proposing in spending cuts, as opposed to rumors flowing from behind closed doors.
McConnell's plan was a breath of fresh air in the madness which has enveloped Washington.
Not much time remains before Uncle Sam's ability to satisfy our obligations is severely impaired. The full faith and credit of the United States has never been seriously questioned in modern times. Now is not the time to jump off a credit cliff. The major credit-rating agencies have put America on watch.
A debt crisis is rapidly upon us. The rest of the world is watching what the United States will do to avert this disaster. I commend McConnell for his rational approach to this serious challenge facing our great country. Difficult times call for leadership. We all should applaud the leadership of a true statesman.
Keep the faith
I'm on a fixed income and draw disability. I'm glad to see both major parties working together to bring an outcome to our defaulting problem. Not all of us have lost faith in our governmental officials. They don't always have their minds in the clouds.