After months of negotiations over raising the debt limit, an agreement, in the form of the Fiscal Responsibility Act (FRA), has become law. And while the deal to raise the debt ceiling is not nearly enough to solve the nation’s budget issues on its own, it’s still good to see legislators beginning to grapple with the hard choices that will only become more necessary as the fiscal crisis worsens.
In terms of positives, first and foremost must be the fact that this deal averts a default. While taxpayers badly need their representatives to start taking the debt more seriously, the debt ceiling is a blunt instrument that should never be allowed to actually cause a default. The consequences of defaulting on our obligations would be enormous for the broader global economy, with American households hit hardest.
Read Full Article »
