Fear arises as the treasury approaches debt ceiling

BY ANDREA RICKETTI
BUSINESS WRITER

With the current economic turmoil, there has been widespread dispute over what course of action to take to fix our nation’s problems. John Boehner, the 61st and current speaker of the United States House of Representatives, is fighting to raise our debt ceiling. The United States debt ceiling is a legislative restraint on how much of the national debt can be issued by the Treasury. Essentially, when the debt ceiling is reached, the Treasury needs to take an extreme measure, which consequently buys more time for the ceiling to be raised.

With that in mind, Boehner firmly believes that Congress should act as soon as possible to protect America’s credit by extending normal borrowing authority. According to a New York Times article, Boehner predicts that the Treasury will be left to fund the government with the cash it has on hand day by day. This would wreak havoc on the United States’ economy. Boehner believes that raising the debt ceiling will alleviate much of the country’s fiscal problems. Even though a plethora of Republicans back up Boehner’s suggestion, the Obama administration strongly disagrees with this course of action.

The Obama administration has consistently spoken against raising the debt ceiling. The administration refuses to allow congressional Republicans to use the debt limit to squeeze concessions from the White House. This situation parallels a fiscal confrontation that happened at the end of 2012. Whenever there is a question over raising the debt ceiling, a political dispute is imminent. The Federal Reserve, a politically independent enterprise, has responded to the situation by proclaiming that using political force over the debt ceiling will hinder the economic recovery. Regardless of political affiliation, the ultimate task at hand is mending our nation’s economy.

According to a New York Times article, Boehner was asked to speak about the debt ceiling while attending a fundraiser.
“I wish I could tell you it was going to be pretty and polite, and it would all be finished a month before we’d ever get to the debt ceiling. Sorry, it just doesn’t work that way. If this were easy to do, somebody over the last 20 or 30 years would have gotten it done,” he said.

It is evident that our nation’s leaders strongly disagree about what actions to take. Until there is a form of agreement, our economy will remain in the same unstable condition.

Contact the writer: andrea.ricketti@scranton.edu

Leave a Reply

Your email address will not be published. Required fields are marked *