Conrad: $2 Trillion Not Enough

The debt-reduction package emerging in talks between the White House and congressional leaders would not “fundamentally change” the alarming rate of growth in the national debt, the chairman of the Senate Budget Committee said Tuesday.

Sen. Kent Conrad (D-N.D.) said the goal of slicing more than $2 trillion from the federal budget by 2021 falls far short of the savings needed to stabilize borrowing, reenergize the economy and avert the threat of a debt crisis.

“A $2 trillion package sounds big, but I think most serious observers would tell you that it takes a package of at least $4 trillion to fundamentally change the trajectory we’re on,” Conrad told reporters. “In the context of our debt, which is nearly $15 trillion and is headed for $25 trillion, $2 trillion over 10 years does not do the job.”

Bipartisan negotiators led by Vice President Biden are rushing to draft a debt-reduction package to persuade reluctant lawmakers to raise the legal limit on government borrowing, now set at $14.3 trillion. Without additional borrowing authority, the government could default on its obligations starting Aug. 2. The White House and congressional leaders hope to raise the limit by just over $2 trillion to pay the bills through the end of next year.