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A Modest Proposal to Fix the Debt Ceiling: Strategic Default

America, it's time we just walked away


It is a sad situation when hard-working CEOs and money managers who make this country great must watch a bloated federal budget waste our hard-earned money.

Millions of Americans claim they are old, sick or laid off – and, instead of working for an honest livelihood, employ all their time begging for a government handout. They drive up the national debt with their dependence, and are responsible for the current budget mess we are in.

I think it is agreed by all parties that this prodigious spending is deplorable. So amid the current debate over the debt ceiling, I feel compelled to offer my modest proposal to fix our free-spending ways: a strategic default on our debt. It’s a strategy employed by many homeowners underwater on their five-bedroom homes in Las Vegas, and it’s one we should put to use on a national scale. It’s time we put an end to criticism for our past behavior and not allow ourselves to be held hostage by creditors.

America, it is time we just walk away.

Politicking over the debt ceiling has brought the chance of a default into the forefront. But even if Congress could reach a compromise before the August 2 deadline, this would be the wrong decision. Like a homeowner who must bend over backwards to pay a mortgage on a home worth a fraction of the original loan, it’s simply not worth the effort.

It is better to simply wash our hands of this mess, suffer the short-term pain and come out a better nation on the other side. As you’ll see, there are clear benefits of a strategic default on our national debt and a decision to simply stop paying the bills.

The end of the welfare state

The shutdown of government spending will serve both short-term needs in balancing the budget but address long-term budget problems we face due to the Nanny State mentality in Washington.

Take Medicare, one of the biggest causes of our current budget trouble. If we slash spending dramatically, we will not only eliminate one of the biggest drains on the U.S. Treasury, but we will also fix the nagging demographic problem caused by Baby Boomers living longer and clogging Social Security roles.

Without healthcare, surely few of our seniors will survive into old age. This will dramatically reduce both future Medicare and Social Security payouts.

These socialist programs are part of the problem. It’s time to make them part of the solution.

The restoration of free markets

Even worse than these big-ticket programs are the money-wasting programs that actively undermine our free-market system.

For instance, why do we dish out $12 billion for the Department of the Interior? It’s time for Uncle Sam to get the sticky fingers of regulators off trees and rocks once and for all. They exist in nature just fine on their own – and if parks can’t compete in a digital age, they have no one to blame but themselves. When an agile and innovative timber company pulls into town, the market should decide who succeeds or fails.

And that’s just for starters. Most galling is the $78 billion for Health and Human Services — a heavy-handed, meddlesome department if there ever was one. FDA regulators tell us what we can and can’t eat, and which drugs we can take. The CDC makes outrageous demands that food service workers wash their hands. Where’s the personal freedom? Where’s the ability for illness and immune systems to compete on an even playing field as God intended, without regulators interfering?

It’s time we stopped this appalling creep of government, and reinstate truly free markets that are allowed regulate themselves in the way capitalism works best.


Article printed from InvestorPlace Media,

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