70% Say Default is Bad for Economy, 56% Say Failure to Cut Spending is Worse

Rasmussen Reports
Jun. 22, 2011

Only 7% realize default is good for our economy? That's unfortunate. Default is actually a huge win for our economy as it would get us out of massive debt obligations which our government got us into (against our will). It's the equivalent of declaring bankruptcy to get out of your student loans (pre-bankruptcy "reform," of course). Default would mean less taxes need to be stolen to pay off bond holders etc. and people who lent to our stupid government, it would also make people less likely to lend to our stupid government in the future. - ChrisA new Rasmussen Reports national telephone survey finds that 70% of Likely U.S. Voters think it would be bad for the economy if the debt ceiling is not raised and the federal government defaults on some of its loan obligations. Just 7% disagree and think it would be good for the economy. Eleven percent (11%) feel a government default will have no impact, and another 11% are not sure.

But 56% of voters see more short-term economic danger in failing to significantly cut federal spending than in a government default on the federal debt. Thirty-four percent (34%) disagree and believe a default is worse.

Looking to the longer-term, 63% say failure to significantly cut spending is more dangerous than defaulting on the federal debt. Just 28% hold the opposite view.

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