“The conventional wisdom in Washington — on the left and among many on the right — is that the debt ceiling must be raised in order to avoid defaulting on the national debt, a potentially catastrophic scenario, the thought of which has business and financial leaders lobbying hard to raise the ceiling. Plenty of conservatives don’t buy the doomsday rhetoric and point to polls that show nearly two-thirds of Americans (and almost half of Democrats!) don’t want Congress to raise the debt limit.
Proponents of the “just say no” approach argue that refusing to raise the debt ceiling won’t automatically lead to a default. In the past, they point out, Congress has waited several months after the debt limit was reached before authorizing an increase, and the economy did not collapse. Sen. Pat Toomey (R., Pa.) has proposed legislation in the Senate designed specifically to prevent a default by directing the Treasury Department to prioritize interest payments on the national debt over all other forms of spending in the event that the debt ceiling is reached.” Read more.
National Review Online, April 26, 2011.
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