John Spratt: “If you can convince the financial markets that you are going to retire $3.5 trillion of Treasury debt, then that will…”

“If you can convince the financial markets that you are going to retire $3.5 trillion of Treasury debt, then that will mean the Federal Government will not be in the markets crowding out private borrowers, driving up interest rates. Instead, for every dollar you pay off, it will be a dollar added to net national saving, and over time it will drive down interest rates, boost the economy and bring that long-term rate down. That in itself, if we could have accomplished it, would have been a long step towards ensuring the solvency of Social Security. That was why it was so critically important. This is not some obtuse debate of whether or not it is better to have less or more debt. It is an absolutely essential element towards making Social Security solvent for the long run.”