Could the US debt default actually be a good thing? One college professor seems to think so.
One Bay Area professor has said that the deal to increase the Federal debt ceiling is no cause for celebration. San Jose State Economics Professor Jeff Hummel has said it would have been a good thing if the government had defaulted on its debt.SJSU Professor Says Default Preferable To Debt Deal « CBS San Francisco
“I think that a treasury default is inevitable, and has been inevitable for a long time,” said Hummel. Hummel said he believes the U.S. should go beyond default and repudiate the debt – essentially saying we have not intention to pay the debt back in its entirety.
He wants the government to enact immediate governmental reform to encourage elected leaders to be more fiscally responsible in the future. “It would make it more difficult for the U.S. Government to borrow, so it would be a balanced budget with real teeth,” said Hummel.