Not Even the Moody’s Downgrade Can Make Republicans Take the National Debt Seriously
In a world where federal policymakers were treating America’s national debt with the seriousness it deserves, Friday might have been a crucial turning point in Washington.
First, the House Budget Committee voted down President Donald Trump’s tax proposal when four Republican members of the committee broke ranks over concerns about how the bill is projected to increase the budget deficit and the debt. “This bill falls profoundly short,” said Rep. Chip Roy (R–Texas), one of those four GOP members, during the committee’s debate on the bill. “It does not do what we say it does with respect to deficits.”
Hours later, Moody’s Ratings seemingly agreed with those objections when the credit rating agency downgraded the federal government’s debt—a signal to investors that buying Treasury bonds is a riskier bet than it used to be. In a statement, Moody’s said that the downgrade reflected the fact that Congress and the president “have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs,” and noted that “current fiscal proposals under consideration” would not do anything to reduce spending and deficits.
Indeed, the tax bill under consideration in the House will add at least $3.3 trillion to the debt over the next 10 years, according to an estimate by the Committee for a Responsible Federal Budget. That figure rises to more than $5 trillion if various temporary measures in the bill become permanent. Those figures should give any member of Congress pause, even if the federal government wasn’t already on pace to add $22 tril
Article from Reason.com
The Reason Magazine website is a go-to destination for libertarians seeking cogent analysis, investigative reporting, and thought-provoking commentary. Championing the principles of individual freedom, limited government, and free markets, the site offers a diverse range of articles, videos, and podcasts that challenge conventional wisdom and advocate for libertarian solutions. Whether you’re interested in politics, culture, or technology, Reason provides a unique lens that prioritizes liberty and rational discourse. It’s an essential resource for those who value critical thinking and nuanced debate in the pursuit of a freer society.
