Austan Goolsbee, chairman of the White House Council of Economic Advisers stated that hitting the debt ceiling, "the impact on the economy would be catastrophic" and continued with, "I don’t see why anybody’s talking about playing chicken with the debt ceiling. If we get to the point where you’ve damaged the full faith and credit of the United States, that would be the first default in history caused purely by insanity."
Speaker Boehner stated that, "America cannot default on its debt"
"Even a short-term or limited default would have catastrophic economic consequences that would last for decades," Geithner said in a letter to Senate Majority Leader Harry Reid
Republican Paul Ryan even stated in various press outlets that the debt ceiling needed to be raised.Now to be fair to the Republicans, they are demanding spending cuts and changes in the budget in return for their support of raising the debt ceiling. There are two major flaws to this line of logic.
- Even if they don't get the necessary concessions from the White House, The Republicans will still vote for the raising of the ceiling. So, the Obama Administration and the rest of the Democrats has no incentives to relent.
- Assuming Obama gives in to the Republicans, the "Spending cuts and Budget changes" will be no where near big enough.
We have to get to the point of saying "Enough is Enough". We can't keep raising and raising the debt ceiling, because that would eventually lead us to defaulting on our debts. Everyone else lives within their means, or makes the drastic changes in our lives to survive, except for our Government. It's now time to take the Credit Card away from the child that does not care about fiscal responsibility.
Video Excerpt From the Movie "Network":