My pal Conn Carroll points to this study from the Bipartisan Policy Center which has this killer slide:
The math seems pretty clear, though BPC adds that the whole process of prioritizing would be pretty messy and chaotic.
Geez Louise! Y’all “policy people” just don’t get it. If you were a creditor and KNEW that the your debtor (e.g., US government) couldn’t pay ALL its bills and was having to pick and choose which of its bills it pays, you would not have much confidence that you would be paid ALL of what was owed to you EVEN if the debtor said that they would put your bill at the top of its list of bills!!!
For example, if you missed a payment on ONLY your Bank of America credit card bill, guess what Amex and every other creditor would do to you EVEN IF you never missed any other payments? That’s right! Even a moron knows that they would lower your credit limit AND increase your interest rate. Plus no one else would lend you money at favorable rates in future. You’ll pay through your nose.
Contrary to the slide above that looks that it was produced by an imbecile, your credit rating is NOT a mathematical formula!
These people doing these analyses are just poor, fools and clowns. So Congress can go ahead and play with fire? We are the idiots who will get burned.