They are commenting on our choices, more debt or live with higher risk of default. The post by Pat Garofalo misses part of the equation, more debt also raises the risk of credit down grade and a downturn. At this point we obviously have a crowding out problem as government spending drives up imports and causes the private sector to contract. It is a constrained resource problem, the Fed cannot print oil and other inputs.
Right now the central government default depends upon efficiency, there is no other path. Given the knife's edge, it may very well be that a debt limit rise gets us to default faster if it induces inefficiencies. Republicans are hesitant for one reason, their own districts have become dependent on inefficient spending by government. Until we see a path toward central government efficiency we are better off forcing the issue.
Just to remind everyone, it is the middle class and poor who are going to suffer from central government inefficiency.
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