Last week the Federal Government reached it’s ‘debt ceiling’. The debt ceiling is the maximum amount of money that Congress authorizes the Treasury Department to borrow. While Congress passed a budget authorizing spending in excess of the debt ceiling last year, some in Congress do not want to increase the debt ceiling unless the budget is renegotiated. To receive full credit, answer the 2 following question each with 100 words. Make sure work is original.
1.) Do you feel like it is appropriate for Congress to vote against raising the debt ceiling? Or, since Congress already approved the spending, should they wait until the next budget cycle to weigh in on future spending?
2.)What impact do you think a government default (the inability to pay its debt) would have on financial markets and the economy?
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