The Hill News

There is another dilemma facing politicians regarding the debt ceiling. If the debt ceiling is not increased, the U.S. government will have to make drastic cuts in spending. This will have a negative impact in the short term on both the economy and the AAA credit rating of U.S. debt by the rating agencies. According to a recent Wall Street Journal/NBC poll, 55 percent of Americans believe that not raising the debt ceiling will create serious problems. Unfortunately, if the debt ceiling is increased without a major restructuring of the government’s budget, leading to a balanced budget, the deficits and national debt will continue to grow. This will also have a negative impact on the long-term prospects for the economy and the government’s credit rating. Furthermore, it will push the deficit and debt crisis into the future, when they will be even more painful to solve.

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