Saturday, October 12, 2013
Shocking: Anarchy Caucus Doesn't Know History
Rep. Morgan Griffith (R-Va.) compared the looming default to the American Revolution on Saturday after a meeting with House Republicans.
The Hill reports Griffith suggested that even if it resulted in a severely damaging default, the House should reject an unfavorable agreement from the Senate.
“We have to make a decision that’s right long-term for the United States, and what may be distasteful, unpleasant and not appropriate in the short run may be something that has to be done,” Griffith said, according to The Hill. “I will remind you that this group of renegades that decided that they wanted to break from the crown in 1776 did great damage to the economy of the colonies. They created the greatest nation and the best form of government, but they did damage to the economy in the short run.”
Indeed. And not overly long after the Revolution, a Constitution was formed, under which the Federal government deliberately assumed a massive amount of debt--amid great controversy that did not involve burning down said government--so it could have credit to expand and grow strong. And we even passed an Amendment after a little dustup over Federal authority that ensured our government would not legally default on the debt that we have had for almost our entire history.
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Most businesses operate via debt: loans from a bank for operating expenses, etc. Car dealers operate with a "revolving floor loan" that pays for the cars the factory delivers and gets paid from the cars sold. But the loan is never paid off, and if it dries up, so does the dealership.
And yet there was once a clamor to "run government like a business," as if that would wipe out all debt and deficit spending (which, technically, is also what businesses do; engage in "deficit spending.")
Posted by: Rmj | Oct 13, 2013 5:43:17 PM
Our town has to use its line of credit much of the year until property taxes come in. We do generally pay it down as we get revenue, but every year we need to tap it.
And, of course, households generally engage in deficit spending, too. Mortgages, car loans, credit cards, payment plans utilities, etc.
It's almost like everybody does it to live and do business. The only difference: our borrowing power is nothing compared to the Feds', and we can't print our own money.
Posted by: NTodd Pritsky | Oct 13, 2013 7:12:54 PM
In short: most R's who rant about running government like a business have never themselves run a business. Put aside the vast difference in mission between business and government... they haven't a clue how to run either one.
Posted by: Steve Bates | Oct 14, 2013 8:11:55 AM
Ted Yoho apparently ran his large animal vet practice into the ground. He opined that telling creditors to wait to get paid was something he'd done, so why couldn't the US government do it?
The only difference being Yoho wasn't running a company considered a linchpin of the world economy, and it's generally not considered a good business practice to tell your creditors you'll get to 'em when you can.
So, yes, he doesn't have a clue how to run either one.
Posted by: Rmj | Oct 15, 2013 7:38:23 AM