“Treasury Secretary Timothy Geithner said on Wednesday that there was no alternative except for Congress to raise the debt ceiling so that the government can keep borrowing.”
It has been proven through history, especially with the recent bankruptcies of Greece and Iceland, that continuing to borrow money will push a country closer to bankruptcy, because the interest payments on that debt becomes more expensive. The United States has been recklessly trying to spend its way out of its financial crisis since 2007 and has only had negative results. Since then, unemployment has increased by an estimated 3 percent and the debt continues to increase where other countries are questioning the dollar, which may jeopardize the dollar’s status as the world’s reserve currency. Maybe its time to reduce spending, especially on public employee’s benefits and unemployment extensions. They should also try to improve its productivity of other goods that other nations want by giving businesses tax incentives to hire and produce more goods in the United States that would further GDP growth.