In the aftermath of the August 2 deadline, when Congress approved a debt limit compromise, South Carolina Republicans are responding. Seven of the eight state elected officials in Washington voted “no” on the deal, with Congressman Jim Clyburn the lone “yes.”
Senator Jim DeMint, who voted “no,” says things may get worse.
“It’s almost worse than no solution because we are telling America we’ve solved the problem for the next 10 years and we have not reduced any spending based on what we are spending today. What they are talking about spending cuts, as you know, is just a little less increase than we planned, and we are not reducing our debt. In fact, we’ll probably add another $10 trillion to our debt over the next 10 years,” says DeMint.
The compromise, which passed in the House and Senate and signed by President Obama, raises the debt ceiling enough to cover 18 months, allowing the government to continue to pay its bills. The deal also increases funding for discretionary programs for the next two years by $44 billion.
DeMint says the faults of this compromise will show in the next few years when the U.S. will need to borrow more money.
“We’re going to bump up a very real debt limit when people won’t lend us anymore money. Every month we have to borrow $140 billion just to pay our bills, and the only reason why we’ve been bumping along, and not very well, over the last few months is that this year the Federal Reserve has been buying 90 percent of our debt,” says DeMint.
DeMint says with this debt limit deal, the future doesn’t look so bright–
“We’re going to have a hard time selling our debt as we go forward because the world knows that we have done nothing to reduce the growth in our debt. So, China and these other countries that are lending us money some time over the next few months or years are going to say ‘no more money,'” says DeMint.
DeMint was in support of the “Cut, Cap and Balance” pledge. He says with the signed compromise, the “debt can has been kicked down the road and off the cliff.”
“If there’s a Day of Reckoning, at least at this point, we could have managed it. We could’ve mottled through without defaulting. We could’ve paid our Social Security. We were willing to give the president one more increase in the debt limit if he would put the country on a path towards a balanced budget. That way we could work together to figure out how to balance the budget within the next 10 years. But the fact that they think that’s ridiculous should frighten every American and here we are drowning in debt, and they say, no it’s silly to stop spending more than we are bringing in,” says DeMint.
Now, a 12-member committee will begin meeting to find ways on trimming $1.5 trillion off the country’s deficit over the next 10 years.