Reagan believed that there were constitutional limits on federal power, yet he understood that constitutional arguments wouldn’t resonate with modern Americans, living in a highly mobile society defined by technological and social change. Perry and Paul are offering a federalism rooted in constitutional nostalgia. Reagan offered a federalism that looked to the future.
The full consequences of a default — or even the serious prospect of default — by the United States are impossible to predict and awesome to contemplate. Denigration of the full faith and credit of the United States would have substantial effects on the domestic financial markets and the value of the dollar in exchange markets. The Nation can ill afford to allow such a result. The risks, the costs, the disruptions, and the incalculable damage lead me to but one conclusion: the Senate must pass this legislation before the Congress adjourns.