Hardliners in the House of Representatives argue that America has maxed out on its credit card. But defaulting on a credit card payment only makes a bad situation worse. The idea of defaulting on our debt can only be described as epically stupid — it would have potentially catastrophic economic consequences. Retirement savings accounts would suffer significant losses and the long-term cost of borrowing would rise, making it even harder for America to get out of debt.
The debt isn’t the problem. The problem is that we spend more than the revenue we collect. The debt is merely a symptom of this disease. Let’s hope that Congress figures out that two wrongs do not make a right.
Graff is the Executive Director/CEO of NAPA and the American Society of Pension Professionals & Actuaries.
