There is no risk of default and financial crisis on Aug 2. The debt payment is only 10 percent of government income. So calm down, chicken littles; the sky won’t fall if the debt limit is not increased.
What would happen is some prioritization. Maybe we don’t need five wars, after all. Maybe we don’t need bases in more than 100 countries. Maybe we don’t need a Department of Education that just makes children dumber, six-figure bureaucrats etc. This is no different than a family that finds itself financially squeezed. Do we really need these Jet Skis? Should we sell one of the cars?
You can take an average corporation and reduce spending 5 percent to 10 percent without reducing output. For government, the figure has to be well over 20 percent. But the only way to get there is to reduce spending 20 percent and force the prioritization to happen.
Every single person at the trough will swear that there is no way he can leave it, but the vast majority can. We just have to apply the tough love required.
Let’s be the adults.