Raising debt ceiling only option left to prevent chaos
The Thursday deadline is just one day away, and the decision to raise the debt ceiling still ominously awaits a verdict.
While the decision to raise the debt ceiling may not be ideal, it has become the only option to save the economy and avoid putting the country back into recession.
Being just a few days away from the deadline that will put the country at its borrowing limit leaves an intense fear of what will happen if the debt ceiling isn’t raised.
Because it has never happened before, according to the Council of Foreign Relations, the possible consequences are numerous and detrimental.
The worst consequence would likely be the government’s failure to make interest payments due to unstable bond markets, resulting in a default.
If the government defaults, the nation’s credit rating would be severely damaged and extremely expensive for anyone in America borrowing money. That’s not to mention the global economic market crisis that would result from a default.
The consequences of a default should bring fear to young adults looking to start their own investments because it can have the greatest impact on them. Paying for college with a student loan or buying a house would have a major Republican default tax, President Barack Obama said in his weekly address on Monday.
Obama said he does not think it would be wise to “kick the debt-ceiling can down the road for a couple months,” sending the government into an intentional default in the middle of the holiday season. A time of year that is known as the happiest could easily become very painful for many families and business owners, especially those with furloughed employees lacking paychecks.
On Monday, Senate majority leader Harry Reid said his most recent plan was making tremendous progress – but Huffington Post reports it was immediately shot down yesterday. The fact the nation is just a day away from deadline and decisions have yet to be agreed upon should really make citizens question the effectiveness of the government.
Reid’s plan would raise the debt ceiling enough to afford the U.S. borrowing needs only until February 2014. It did not resolve disagreement over long-term spending and health care that caused the shutdown, according to ABC News.
Essentially, the plan was a quick fix to reopen the government, but if resolutions weren’t reached by February the nation would have ended up in the same position, if not a worse one.
But now the nation is caught in a worse position, because the best glimpse at a solution is no longer an option.
Unfortunately raising the debt ceiling comes down to being the lesser of two evils, because at this point the only other option would be to default.
Raising the ceiling will at least end the government shutdown and send people back to work. The abandonment of Congress’ staunch dogma and lack of cooperation would do the American people good at this time.
Get Top Stories Delivered Weekly
More usforacle News Articles
Recent usforacle News Articles
Discuss This Article
MOST POPULAR USFORACLE
GET TOP STORIES DELIVERED WEEKLY
FOLLOW OUR NEWSPAPER
LATEST USFORACLE NEWS
- As USF football surges forward, winless UCF hobbles toward finish line
- USF men's basketball tops Albany for first win of season
- USF professor goes viral for comments on friend requests
- Tampa sees rise in income inequality
- Yogurt, the front-line defense against Type 1 diabetes?
- USF’s new policy not in employees’ best interest
- Open mic discusses impact of suicide
FROM AROUND THE WEB
- The INs and OUTs of a Hospital Stay
- The Movie Studio Reveals New Opportunities for Indie...
- Brighten Your Holidays With LED Lights
- Tell Congress to Protect Paper Investor Reports
- Climb Stairs Without Hurting Yourself
- Is Your Baby Ready for Chewing?
- Millennials Are Determined to Lessen Their Kids' College...
- Organizar Un Maratón De La Película Star...
- Know Your Drug Costs Before You Leave the Doctor's Office
- Shopping for a New Sofa? Keep These Design Tips in Mind