The current economic condition of US is an important matter of concern for experienced economists. The supposed increase in debt ceiling has also become a huge concern in recent times. As per the financial analysts, the economic growth initiated by low tax rates and reduced government expenditure are the ultimate solutions for current economic turmoil in US.
So what must be the Obama government’s prime step towards economic elevation? A humble approach towards debt problems may be a wise step. Well, the plans for development are being upgraded. The facts and figures show that the publicly-held national debt limit stands at nearly $11 trillion. There is a legal commitment that more than $86.8 tax revenue will be spent as unfunded liabilities of US.
Within next 4 years, the Obama government has promised to add an amount of $4 trillion to the national debt to modify the significant ratio of Gross debt to GDP. The debt ceiling amendments are on and Obama is trying hard for implementing the commitments. An immense tax hike was demanded though in the recent budget negotiation of fiscal cliff”.
However, the much talked about governmental debt ceiling has been suspended recently by Congress. The debt ceiling was not increased to any specified limit as the increase is allowed to be automatic. Most of the Americans are against of augmentation in the debt ceiling from 29% to 64%. So, there are fair chances for Congress to face strong public oppositions while increasing the debt ceiling.
Proper knowledge must be provided to make the debt ceiling growth acceptable and peaceful. According to many economists and market experts, most of the Americans are not aware of the fact that if the debt ceiling will not be increased, then it may summon huge economic crisis. In fact, many Americans have the misconception that increasing debt ceiling will not help the US economy by any means. This misunderstanding must be removed first for a successful economic growth.
The federal budget deficit is a vital problem for many Americans. For them, this problem must be treated immediately for a better economy. Increase in debt ceiling is a solution according to these Americans. Not everyone shares the same view though. On the other hand, many Americans consider deficit as a huge problem but they don’t force for immediate solution. According to them the problem may be solved when the finances will perk up. Almost 58% of these Americans support the increase of debt ceiling.
Americans who are opposing debt ceiling increase believe that the federal government wastes nearly 50 cents on each dollar collected as tax. The supporters think the other way around. So, it can be assumed that the opposition to debt ceiling rise is very much associated with the assumptions regarding federal expenditure. Congress may have to address the spending factors to garner public support for the increase. Some forthcoming chances are there for Congress to convince the public in the coming weeks. In March and April the chances may appear. Congress must take the full advantage of these opportunities to acquire more public support for debt ceiling increase.
Author Bio – Andy Masaki is a financial writer associated with the Oak View Law Group. He loves to write on wide variety of personal financial topics like debt snowball, debt avalanche, and the likes. He occasionally writes articles based on business and economy.