If past policies brought a vicious cycle of budget deficits and high interest rates, our new economic strategy drives a virtuous cycle of budget surpluses and low interest rates. We know what paying down the debt means for America's families. It is the equivalent of a tax cut worth hundreds or even thousands of dollars to them and lower interest costs. Smaller debt brings lower interest rates. When interest rates fall, more families can afford a home or a car or a college education for their children.
More businesses borrow more to invest, boosting productivity and creating more jobs.
In the past seven years, we've balanced Washington's books, we've cut its credit card balance. Now let's refinance our nation's mortgage and then wipe the ledger clean. Paying down the debt creates wealth, creates jobs, creates opportunity. It's the right and responsible thing to do, and we have the chance of lifetime to do it. If we're to make the most of this prosperity, we simply have to put first things first.