Opposition of raising the national debt limit

Opposition of raising the national debt limit

Opposition of raising the national debt limit.

Opposition of raising the national debt limit: The United States is on a precarious budget path. Presently debt and spending are hazardously high, and impending debt and spending are on trail to escalate even higher due to the high rate of entitlement spending.

Research and statistics show that developed economies like America are in danger of significant and extended decline in economic growth and development when the public debt is at a level of 90% of the gross domestic product.

The repercussions would be severe for all American citizens, but more so for the elderly, the poor and the middle class. Policy makers in the U.S. have a lot to learn from Japan and Greece if they are to avoid economic stagnation and

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Government shortfall spending and its related debt deducts from the total of private saving at the disposal of private investors. Causing reduced economic development and growth.

Raise of the national debt limit should be avoided at all levels if any given economy is to attain its potential growth and development. If anything it should be reduced to encourage investments, lower interest rates and inflation.

When interest rates are low investments are expecte to increase. Inflation on the other hand is anticipate to fall. Hence achieving faster economic growth and affordable living standards for all in the economy.

Reference

Morgan, A. (1831). Remarks on the national debt: The principal cause of the present distress, and  statement of a plan for effectual relief from its pernicious effects. London: W. Marsh.

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