Gov. Scott On Debt Debate: “Impact Will Be Minimal”

MIAMI ( – Governor Rick Scott has weighed in with his thoughts on the federal debt ceiling. Scott is in favor of letting the U.S. default instead of raising the debt ceiling.

“The impact would be minimal,” Scott told CBS4 news partner the Miami Herald.

Scott’s dismissal of the potential default of the U.S. government is because he feels that it would have little to any impact on state government or the financial markets.  I think it’s highly irresponsible for any person in elected office to actually state the us should default on it’s debt,” said Barry University Finance expert Dr. Nichole Castater.  “ That’s exactly what we would be doing.”

Gov. Scott continued pushing his argument this morning on CNN’s “American Morning” show.  The anchors on the show were not buying his argument of simply cutting spending.  “Why is this difficult for you to understand, governor?” asked one anchor.  “This is what we did in Florida,” Governor Scott responded.  “We stopped spending money.  We prioritized how we’re going to spend money.”  (To see the entire CNN interview click here )

Dr. Castater says raising the debt ceiling and working on a new financial plan are two different issues.  She also does not agree with Scott’s thought that the effects would be minimal.  “If you don’t have a loan, if you don’t have debt, if you don’t have a credit card, if you don’t have anything that’s based on any type of interest rate, if you have plenty of cash in your account and never have had to take out debt, then ya, your effects are minimal,” Castater said.  “I’m not quite sure what he’s talking about to be perfectly honest. “

Moody’s has already threatened at least five states with a credit rating drop if the federal government goes into default. Florida isn’t one of those states, but a federal default could bring mass chaos to Wall Street and the bond markets.

The last time bond markets were severely rattled was after Lehman Brothers collapsed in 2008. That event, along with others, is part of what sparked the Great Recession and the jobless recovery.

But Scott isn’t fazed by the warnings coming from Wall Street and the Treasury Department.

“I don’t think anybody knows, because it’s never happened,” Scott told the Herald. “I believe the markets understand where the federal government is. They understand where the spending is, so I think the market has already priced it (default) in.”

Scott said if he were in charge he would not raise the debt ceiling and instead restructure the government to determine how money is being spent.

(© 2011 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Miami Herald contributed to this report.)

More from Ted Scouten
  • Harriett

    Yea, if Scott were in charge he would privatize the federal government.

  • social concern

    US is a great country.

    From a Latin perspective, US needs to stop spending so much money – why you ask? Because if the US does not control it’s debt, it will not be able to continue the social programs in Latin America.

    There is a real danger that the US spends more on Latin Americans inside the US and slows funding of the social programs in Latin America!

  • Linda

    Skelator has managed to ruin Florida, why would anybody even care what he has to say about ruining the Country. I can guarantee he’s a one term governor and should have been in jail already, now let’s make it ASAP.

    • bobbyb

      There is a new law that will be implemented in a couple years regarding the management of companies found to commit fraud. When implemented, these laws will require jail time for the bosses. No more slap on the wrists with little fines. He plead ignorance and got away with it last time. You are right – he should have been in jail…. He took the 5th 67 times in a deposition right before the election. What’s up with that? Perhaps the indictment is looming!… Also, I hope his life savings is in a 401K if the market dives because the “impact of a default will be minimal.”

  • jon W

    The VILLAGE IDIOT speaks again!!!!!!!!!!!!!!!!!!!!

  • ana pisati

    Governor…………….. where are the jobs?????

  • Greg

    Would somebody please tell the governor what is the role government is suppose to play in world financial markets and in his case Florida’s financial market. He is ruining this state’s ability to fund itself and he has no one to blame but the last (3) republican governors.

  • Johnathan

    This Scott fellow is a crook and whatever he has to say is not worth listening to. A thief, a liar, and the worst governor in all of our great country. This POS would be impeached right now if it were allowed in our state.

  • ScottWillSavetheState

    Scott has it right!! Who the hell is Moody’s to tell that they will downgrade US? Those are the same crooks that gave the Mortgage Backed Securities AAA ratings and put us in this mess!!

    The US receives 700 Billion every month so just pay SS, Medicare, the interest on the debt to the Chinese and our Soldiers and you can skip on paying the federal government workers for now.

    Scott has created more jobs between January and May 78,000 that what the entire US has created 54,000. The state and union workers that he eliminates do not count as jobs since they are just TAX SUCKING and not revenue generating.

    Thanks you governor and carry on with your mission!!

    • bobbyb

      Well- you can badmouth Moody’s but the reality is that if they downgrade the US rating then ALL of America’s investments will dive. All of the 401k securities will plummet. Interest rates will rise because the US borrows the money it spends. If our credit rating drops our borrowing interest rate will rise. Do you see the market dropping now with the jitters? What do you think will happen if we default? Lots of people will loose a lot of money from their life’s savings. There is more to the story than just Florida. The national economy will affect everyone making things worse. The governor can’t seem to see the the big picture – but wait – he couldn’t see the corruption within his own company when they committed fraud. He couldn’t control his own company – how is going to control the state?

  • Cat

    You will eat your words when he is done putting Florida back on its feet. It has only been 7 months and our debt and unemployment rates have decreased. Did you miss the part about Moody’s not threatening to downgrade Florida’s rating? I guarantee you we would be on that list if Sink would have won. Either that or we would have a lot less money in our pockets from over-taxation. BTW, it is clear to see that this news source is totally liberally biased and does not reflect in any way the views of the citizens in many other parts of Florida.

  • Kathleen

    Hey Cat, reporting facts in the real world is not a “liberal bias.’ That’s a convenient meme for right wingers who only like to hear the lies told in their echo chamber. Rick Scott is the worst governor in the country, he’s a petty little liar who could not care less about any citizen of Florida including you. He cares about his own personal business and his crony friends in corporations.

  • Coco

    Thank you for expressing that which we say all the time “Down South” but that is not popular in the US — the Latins in the US want all the funding but why did they leave their countries — which need the funding more???

  • bobbyb

    For all the Republicans that don’t want to tax the wealthy or big oil — please read this -NEW YORK — Chevron Corp, the second-largest U.S. oil company, reported a 43 percent jump in quarterly profit on Friday, beating Wall Street forecasts as high oil prices and fat refinery margins offset a drop in its oil output…. please explain to me why we are thinking of cutting Medicare and Soc. Sec. benefits to protect the wealthy.

  • Reddotmiami

    If I had known that all you had to do to be Governor of Florida was to say no I would have run for the job myself…I thought it was all about getting a good deal on Health Care and Transportation funds…Rebuilding the states infrastructure and education system. It’s almost as if he has seceded from the rest of the country.

blog comments powered by Disqus
Your Holiday Hints!
Connect With Those In Need

Listen Live