Once unconcerned, Tipton now sounding the alarm about economic consequences of not raising the debt limit
Along with throwing his support behind House Speaker John Boehner’s plan to raise the debt ceiling, Colorado’s freshman Congressman Scott Tipton changed his tune yesterday about the economic consequences not taking action.
Yesterday, Tipton sounded extremely worried about the economic impacts of not raising the debt limit, but two days previously not so much.
As the Grand Junction Sentinel reported today:
“I don’t think I can overstate” the economic dislocation that would take place if the debt limit isn’t increased, Tipton said.
A reduction in the nation’s credit rating would affect all Americans because no individual can have a higher credit rating than the nation. Mortgage, credit-card rates and other forms of borrowing would immediately become more expensive, he said.
Contrast this with what Tipton told the Durango Herald Tuesday:
Tipton, however, argued that Obama overstated the consequences and that enough revenue would be coming in so that most of the United States’ bills, including to Social Security, Medicare and Medicaid, would be paid. “We do have the ability to meet those obligations,” he said.
Tipton also told KVOR-AM 760’s Jeff Crank July 16 that the U.S. could meet its financial obligations, even if the debt limit was not raised. Listen to the audio here.
Crank: Let’s hope we can hold the line much like was done on health care, where really every Republican stayed firm and solid on that point and that we don’t have people getting nervous. This President and the media is very complicit in this, trying to equate a vote on the debt limit increase to the defaulting—the US government defaulting. Those are two very different things and we need, I think as conservatives to do a better job at education that those are different things. Just because the debt limit isn’t raised does not mean that the United States government automatically defaults on its obligations.
Tipton: No it doesn’t. The revenue that’s going to be coming in just over the balance of this month not only has the ability to cover the other areas we talked about just earlier but also be able to pay all of our interest payments as well. We have numerous economists, and I think maybe the most telling thing that ought to drive a lot of our decisions finally came out of S & P and Moody’s, the rating organizations. It isn’t a matter of just increasing the debt ceiling. They say that there has to be real reform, cuts up to $4 trillion, so that they can give a AAA credit rating to the United States. They understand, finally, at these credit rating agencies that if we don’t get our fiscal house in order we are in the pathway of Greece.
Please correct me if I’m wrong, but Tipton appears to be the only Member of Congress who’s flipped his views on if extending the debt limit matters, and reporters should find out what changed his mind on this.