Don’t Worry: We are Flush with Cash!
Senator Jim DeMint (R-SC) yesterday:
"There are enough assets in Social Security and Medicare to pay the benefits of those programs for several years," he said. "Other programs can be funded from tax revenue. There certainly will be disruption, but this is not a deadline we should rush and make a bad deal and do something that cuts benefits from seniors without giving them better choices."
He said something similar this morning on the Today show: Sen. Jim DeMint On Debt Ceiling: ‘We Don’t Need To Panic And Rush Into A Deal’.
Without getting into the specifics, I must confess to finding this assertion confusing insofar as the standard GOP line of late has been that we are “broke” and therefore we need immediate austerity. In fairness, I am not sure I have ever heard DeMint use that word (i.e., “broke”) but he certainly has been a fiscal hawk. At a minimum, assertions like that above are disingenuous (at best) because their veracity is questionable and, even to the degree to which they are true, contain a large number of unspoken assumptions about what else might not be paid for to allow such a scenario to play out. Further, they utterly ignores likely consequences in financial markets.