by Calculated Risk on 10/04/2013 11:25:00 AM

From Treasury Secretary Jack Lew: U.S. failure to pay bills hurts everyone

An increase in the debt limit simply allows us to pay our bills. Without a debt limit increase, our government will — in a matter of days — not have the resources it needs to make good on its commitments.

Only Congress has the power to lift the debt limit. That means only Congress can clear the way for our government to meet all of its financial obligations.

The United States has met all its financial obligations for more than 200 years. We are a nation that keeps our word. We are a nation that stands behind our full faith and credit.

Some claim that the United States does not need to meet every one of its commitments. They argue that the government could pay certain bills and let others go unpaid without consequences.

The United States cannot be put in a position of having to choose which commitments it should meet. How could we possibly decide among supporting our veterans, maintaining food assistance for children in need, or sending Medicare payments to hospitals?

CR Note: I think Congress will pay the bills (i.e. raise the "debt ceiling"). As I've noted, the "debt ceiling" sounds virtuous, but it isn't. It is actually just a question of paying the bills. As Republican Senator Mitch McConnell said in 2011, if the debt ceiling isn't raised the "Republican brand" would become "toxic" and synonymous with fiscal irresponsibility. If Congress stopped paying the bills - for the first time in 237 years (except some minor glitches) - people will remember when they vote. So it won't happen; Congress will pay the bills.