They would give the government the same kind of tools, the same flexibility that families and companies have in managing their finances. They would, in effect, allow us to refinance old debt and pay it down on the best terms possible, saving taxpayers billions of dollars in the process. 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, even thousands of dollars to them in lower interest cost.
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.