America's finances are a mess. The federal government spends too much, and the debt burden is too high.
These are givens, and they are the reasons for public outrage. However, it doesn't mean the government shouldn't raise the debt ceiling. Standard & Poor's warns there is a 50% chance it will lower the U.S. government's AAA credit rating by one or more levels within three months. S&P said yesterday that even if Congress raises the debt limit in time to avert a default, it might lower the U.S. sovereign rating. Meanwhile, only 55% of respondents in the latest Wall Street Journal poll "say that failing to raise the debt ceiling would be a real and serious problem."
Today's Daily Ticker guest David Walker -- the former Comptroller General of the United States and head of the Government Accountability Office -- says it's imperative both sides of the aisle find a compromise that also sets conditions to lower our long-term debt and get us back on track. If they don't, the rest of us willRead More »from 5 Consequences If America Doesn’t Raise the Debt Ceiling