U.S. DEBT LIMIT
If you gave your child a credit card, and he or she kept spending right up to the credit limit, you would take the card away and make changes to ensure that behavior changed. That’s the rational thing to do, but it’s not what the U.S. government does.
Yesterday, Secretary of the Treasury Janet Yellen announced that the federal government hit its debt limit and is now using extraordinary measures to continue paying our nation’s bills. If this sounds familiar, you are not mistaken. According to the Committee for a Responsible Federal Budget, the U.S. first resorted to using extraordinary measures in 1985. We've now used that emergency escape hatch 16 additional times.
It’s clear that U.S. is suffering from a spending addiction. We can’t continue raising the debt limit without making significant, long-term changes to bring our fiscal house in order, including spending cuts, budget caps, and other commonsense fiscal reforms. We can’t continue putting off hard decisions while robbing our children and grandchildren.
I came to Congress to fight against the wasteful spending, bloated budgets, and the destructive Washington status quo. I will not a support debt limit increase this Congress without substantial fiscal reforms. We will not default on the debt, but neither should we continue to acquiesce to the high-spending status quo.
I joined Larry Kudlow earlier this week to talk about our fiscal nightmare: