Is Default Possible?
As the empty suits in congress discuss the possibility of raising the debt limit, we hear that the only outcome of failing to raise the debt limit is that we will default on the countries obligations. If that happens then it will be the fault of those who choose which bills to pay.
The country does not suffer from a revenue problem, millions possibly billions of dollars are collected every day. We do have a spending problem. We spend millions probably billions of dollars every day. Is there someone in government who decides what is spent every day? I suppose it’s possible that no one decides what gets spent, and whatever bill is due gets paid quickly and without any scrutiny at all.
If our daily income is ten million dollars and our daily obligations are twenty million dollars, is there someone who makes the decision what we do pay and what we don’t pay. If there isn’t I would like to apply for that job now.
The government has a large amount of money available every day to use to satisfy its obligations. If we default, it will be because the government failed to prioritize it’s payments, not because money was not available to fulfill the obligations.
The question is what must be paid every day, what should be paid every day and what can be paid every day.
Rather than default, we can pay what we must every day. We can always not pay most of what government chooses to pay for on a daily basis. The wasted spending can be cut on a daily basis and we will all be better off.
Rather than go into deeper debt we can live within our means and stop spending beyond our means. If that means we don’t pay for some things that some people think are critical, then we don’t spend. We should be more public and more critical of what our government spends. If the whole country saw what checks were cut every day and could see the waste and mismanagement of government resources we would all want the debt limit reduced significantly.