Comments by "Sam Aronow" (@SamAronow) on "The US Debt Situation Explained" video.

  1. Failure to raise the debt limit is very similar to returning to the Gold Standard– it's simple and can be stated in a single sentence, but in the context of an entire economy is just a complete self-own that does nothing but make the country and most people poorer. Greece defaulted because it couldn't pay; the US defaulting would be nothing but a choice, effectively punishing society for the crime of functioning (such as it does). And all to make life harder for old people and poor people.
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  2. You wouldn't want the US to be entirely debt-free though, as that would also dry up the government's credit. Budget surpluses (which are problematic in their own way, but that's a different conversation) would have created an incentive to offer more Treasury bonds.
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