The US Debt Ceiling Crisis and Economic Impact

Filed in Gather Politics News Channel by on July 22, 2011 0 Comments

The United States Congress still has not reached a decision to either raise the debt limit or default on loans. In the meantime, many Americans are without employment.

With the debt ceiling crisis still in a stalemate, the US unemployment rate has risen in 28 states. Congress needs to raise the debt limit to avoid defaulting on its loans and create revenue through job creation.

The current unemployment rate is at 9.2 percent (14.1 million Americans), according to the US Department of Labor. Economic analysts are forecasting that generating at least 250,000 jobs per month would quickly reduce unemployment; half that amount is just to keep up with population growth and prevent the unemployment rate from increasing.

Today, the House Senate Democrats rejected the Republican’s “cut, cap, and balance” deficit reduction plan 51-46. That plan would’ve called for a reduction in federal spending along with an increase in the debt ceiling with limits on expenditures and add an amendment to the Constitution requiring a balanced budget.

More than likely, Congress will reach an agreement to raise the debt limit before the August 2nd deadline, and not default on loans. The Senate will need to cut spending as well but a clear plan to create jobs should also be included to help generate more revenue into economy.

US Public Debt Ceiling Trillions

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I'm a current Conflict Resolution Masters of Science student and freelance writer. I have undergraduate degrees in Sociology, Social Science, Interdisciplinary Studies and a Business & Management Certificate. I am a former retail cashier and entry-le

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