Contrary to popular perception, the United States is not immune from a sovereign debt crisis like that currently roiling Greece and other European countries.
Indeed, as Joint Economic Committee Republicans explain in a new staff commentary, “Downgrade Day” for America may occur as soon as 2015, thanks to our government’s historically high deficits and growing national debt—now approaching a staggering $13 trillion.
To avert this impending crisis, the U.S. must begin serious and credible fiscal adjustments soon. Historical evidence suggests such adjustments are possible, while recent macroeconomic studies show adjustments work best when focused on spending restraint and economic growth, rather than on tax increases.
Click below to download a PDF of the full commentary.