The Solution to the Debt Ceiling Debacle: New at Reason

Today the House Committee on Financial Services’ Subcommittee on Oversight and Investigations held a hearing titled “Federal Spending and the Debt Limit.” Among the witnesses was George Mason University Mercatus Center Senior Fellow Veronique de Rugy.

De Rugy made four main points:

• High and increasing debt has adverse consequences for our economy.
• There are a number of institutional reforms that can be implemented to check the spending that drives this growth in debt.
• Entitlement reform is essential, as rapidly burgeoning growth in entitlements is driving the growth in spending.
• The latest increase in the debt ceiling gives us some time to reach an agreement that reflects real reform, and there are sufficient assets available that default is not a concern.

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