Debt is larger than GDP and money in circulation
Editor’s note: Huntsman Professor William F. Shughart II, J. Fish Smith Professor in Public Choice, was quoted in this story that ran on Aug. 9 in WatchDogWire, an online publication that trains “citizen journalists” to cover stories that “are otherwise ignored by the establishment media.”
By Adam Ulbricht
As the Congressional recess begins for lawmakers in Washington, D.C., a major fight looms shortly following their scheduled return. Prior to the start of the near month-long break, Congress failed to agree upon on the next step for the debt limit debate.
As time ticks away, the country inches closer to the late fall deadline set by the Treasury Department. That date is when the U.S. will hit its limit of $16.699 trillion dollars.
“Debt has to be repaid,” said William Shughart, a professor at the John Huntsman School of Business at Utah State University and senior fellow at the Independent Institute. “The only way to get out of it is either drastically reduce spending, or drastically increase taxes.”