Moody’s: throw out baby, bathwater

Debt rating agency Moody’s suggests this morning it would be better if America didn’t have a debt ceiling at all. This is throwing the baby out with the bathwater.

Having a debt ceiling didn’t cause our debt problem. Overspending did. The point to get here is that this fight is a good thing because it is starting to engage the public in a discussion we need to have. Removing the debt ceiling in order to avoid fights about debt ceilings will remove the superficial problem while only make the real problem worse.

All the more reason Kentucky needs a state debt ceiling. Frankfort over the past decade has taken full advantage of borrowing money as fast as possible with an implicit green light from the people of Kentucky. We already can’t afford the debt we have at the state level.

We can’t win the debt fight in Washington D.C. until we cut spending and we can’t even start the fight in Frankfort until we start talking about tying the hands of state politicians — Democrats and Republicans alike.

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2 Responses to Moody’s: throw out baby, bathwater

  1. Diedra says:

    This has been said before, and we all agree its correct. I want to know specifics, cut what and by how much. Our present governor has called balancing the budget, by borrowing from tomorrow. Lets get down to the “Chris Christy” get it done, and stop the talking !!!!!!!

  2. directorky says:

    I wish we all did agree that making government smaller is the way to go, but we are going to have to endure a lot more talking before that is the case. And the federal debate should make very clear that naming specific cuts doesn’t speed up the process at all. As soon as conservatives mention cutting Medicare, Medicaid or Education, all we hear from the other side is how much we hate old people, poor people and children. The only way to bring the other side to the table is make the spending pie smaller so they have to focus more on how it gets sliced up. As difficult as that is, it is no worse than letting them take each bullet point one at a time to stir up angry constituencies. Kentucky’s debt rating is already one of the worst in the nation and we already are having to play smoke-and-mirrors games to make debt payments now. When we get everyone’s attention on the debt, then the real action will start.

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