The President Obama passed the Debt Ceiling Bill, and it was passed by Congress.  In the America, the federal government can spend their expenditures, when Congress allows it to use the expenditure.  When total expenditure it pays exceeds the revenues it gets, there is budget deficit, and the only way to pay the differences is that government pays them by issuing debt instruments like bonds.  According to federal law, the amount of money that government can borrow is limited by the debt ceiling.  The point of this bill is that U.S. can take on more debt.  There are lots of arguments about it.  Someone said that if U.S. fails to pay interest rates to its bond holders and national debts by not raising debt ceiling.  It can be severe like Sep. 2008, catastrophic economic consequences.  At the same time, someone argues that if government continues growing its debts and budget deficits, it would lessen American potential growth rates.  This is because it might lessen national saving and domestic investment.  Moreover, it makes interest rates high compared with the other.  In other words, a situation become like European crisis.

I cannot decide which one is better option at this point.  The both sides talk their opinions with proper theories.  However, in my opinion, it is not that good to raise debt ceiling, because the higher government debts are, the higher burdens its next generations have.  Government has to think that even though it needs the money to go through the crisis, it has to pay about it later.  In addition to this reason, some European countries which get crisis has serious budget deficit to do welfare programs.

Article

http://news.outlookindia.com/items.aspx?artid=729812

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Throughout this weekend, I had read so many economic articles, and then I found one interesting article about the job report for September and Obama’s Jobs bill.  On the jobs report, it shows that employers added 103,000 jobs last month.  It looks like U.S. economy almost avoid Double-dip recession, but there are still a lot of unemployed people, and people who have given up getting a job.  Also, the job report includes people getting back to work from a Verizon’s strike.  Because of these reasons, Obama want to pass the jobs bill, which uses $447 billion as a momentum of Economic growth.  He thinks the situations among Euro zone, the world are still bad, and it could badly effect on U.S. economy

I also think U.S. is still dangerous.  It could go to double-dip recession, but with the money, almost 3% of GDP, U.S. might put if bill was passed by Congress, it would help economic growth in 2012.  This is because through this money, many people could be back to their works, and then the people who get back to work can consume more goods and services.  Even though I simply wrote this model, I am pretty sure this bill help American economy situation.

You can get more information about the articles I read with these two links.

http://www.nytimes.com/2011/10/08/opinion/more-bleak-job-numbers.html?ref=global

http://www.cnn.com/2011/10/06/politics/obama-economy/index.html?iref=obnetwork

Hi, everyone~! I am happy to study with you guys.

My name is Haneul Kim from Busan, Korea.

I am majoring Economics and an exchange student from Korea maritime Univ.

I like playing a baseball and swimming.

I am a big fan of EPL especially Manchester United, so sometimes I watch soccer games.

Through this term, I want to learn how to write a business mail and improve my writing skills.

Even though, it is my last term of U of O, I really want have good relationship!