US Debt Cannot be Eliminated because of Political Indecision

The political indecision is considered to be one of the main problems as to why the US debt issue is not going away for once and all. While the Democrats are considering the glass as half full, the Republicans are considering it half empty. That is the main reason as to why the US debt can’t be done away with. One party is trying to establish their viewpoint while the other is trying the same.

What the two parties and the politicians are failing to realize is that, the problem is what matters and solving it is too. House Speaker John Boehner, R-Ohio is of the opinion that “Our economy is recovering at the slowest rate since World War II,” and “Quarter after quarter, the growth numbers barely move, unemployment stays about the same.”

Differences Between the Political Parties Resulting in Loss

Although the nation is on the path to recovery from US debt, the road still is uneven. So, there’s high risk that the economy may topple over once again. The US debt ceiling issue is one of the lingering problems.

Even if the House Speaker is of the opinion that the growth of the economy is slow, the Democrats choose to differ. President Obama believes and claims “There are a lot of reasons for us to feel optimistic about where we’re headed as a country.”

It’s been 4 years since the Great Recession, but the recovery of the job market is still down, in comparison. According to the economic forecasters, economic growth is going to be around 1.5 to 2 through that of September, 2013. Like, Nariman Behravesh, chief economist for IHS Global Insight says that “Forecasting these days is difficult. There are a lot of imponderables out there,” and adds “Employment growth will be ok but not great”. “And the politics are such that the closer we get to the midterm elections, it’s more likely that nothing is going to be done,” he said.

So, political indecision is what is resulting in such issues within the nation. The US debt ceiling cannot be solved and every time the situation comes into forefront, solving it becomes a thing of concern.

Furthermore, there’s also high level of confusion on the fiscal policies which are to be followed. Mark Zandi, chief economist at Moody’s Analytics thus says that “There’s still a fair amount of angst over fiscal policy. And the level of the angst is definitely a function of whether you’re a Republican or a Democrat,” and that “And then as you move into next year and the elections, there’s going to be more hand-wringing as well because of the political back-and-forth.”

Still, he is a bit optimistic about the economy and so he goes on to say that – “We are going to start to see stronger growth. The fiscal drag will fade, the housing recovery will add more juice to growth and the Federal Reserve will be able to manage through this in a reasonably graceful way.”

Business economist Peter Morici of the University of Maryland however added that “The economy is as sick today as it was prior to the financial crisis and the Great Recession. Those were caused by fundamental dysfunctions that remain unfixed.”

In addition, there’s also the personal debt issues. Although, more and more number of people are getting help from debt relief companies, but very few have been able to get out of it. So, the nation has still not be able to get out of its debt problem.


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