Friday, December 5, 2014
Should America Repudiate The National Debt?
The US National Debt rose to over $18 trillion this week. That number is far scarier when you realize that the debt soared to that level from only $1 trillion over the past 33 years!
Of course, when our political leaders aren’t trying to sweep this big mess under the rug, they’ll be bickering with one another and pointing fingers to shift the blame onto the other party.
And when they’re not busy doing that, they’ll be coming up with conflicting solutions to the problem. Democrats, when they actually give a damn, will suggest raising taxes. Republicans, when they pretend to give a damn, will suggest cutting spending.
But I propose that we seek a third option: repudiate the debt!
At this point, no amount of tax raising or budget cutting will undo the damage that is our national debt, so it seems that the only other sailable solution would be to outright repudiate the debt altogether. If there is no chance of us ever paying it, why bother paying it at all?
That may sound like a crazy idea, but as Murrary Rothbard explained in his article on the matter, not only would the decision be the moral thing to do, but it would be an economically-feasible decision with plenty of historical precedent supporting it.
So what says you? Should we repudiate the debt, or should we try to pay it back through budget cuts or tax increases?