Originally Posted by 1997gtx
It's easy ... I'll quote some of my favorite communists:
It's really common sense. We run out of money in May (really more like July). If we can't take out further loans to pay for things, we literally can't pay for anything.
Think of this way. You 'own' a business. You take out loans to pay payroll. If you can no longer take out loans to pay payroll, then your business closes. This is actually what has happened with many small businesses over the past few years as lending had tightened. The same theory applies to the government. No loans = no paying for ANYTHING. And then the world-wide markets go into a tailspin again. A global depression.
Reducing spending by 20% and not raising the debt ceiling won't even work. We still need to borrow money to pay for things.
Republicans all agree with this. They just like to demand cuts to appease their base. They all know they eventually have to vote for the debt ceiling to be raised.
Communists? .. What?? Are you a communist???
If i have a business, and if i cont to take out loans that i cant repay, at some point i will go in to default and the bank will take my business. Banks have a time limit and rules and lots of paper work for them to take you to court with and shut you down.
So why would i take a loan knowing i will never be able to repay it? Thats just stupid! Instead i would cut back on my spendings until i can afford to spend money on more things.
And if i cant get a loan, then i fire people and cut back on my spending till i can get back in the green.
Its economics 101.