Dr. David Ackah PhD1, & Dr. Samuel Amoako DBA2
Golden Sunbeam University College of Science & Technology1, & School of Business and Finance (ACCA Tuition Provider2)
Executive
The United States has exceeded its debt limit and the limit has to be raised in the next couple of months to avoid defaulting on its debt. Indeed, some experts are saying that the debt limit has already been breached and the Treasury is resorting to extraordinary measures to keep the economy going. Further, the point needs to be understood that raising the debt limit means that the United States has the facility to fund what has already been spent and raising the debt limit does not mean that the country is engaging in more debt. In other words, what politicians across the spectrum have to keep in mind is that the debt limit is all about repaying what is already spent and hence, it is not an indicator of how much the United States has to borrow in future. That is a separate issue altogether and the reason for discussing this aspect in detail is that the Republicans have been consistently insisting that the US cannot go on borrowing without cuts in spending.
Keywords: Financial Battle, National Development, Growing Countries Problems
