The amount of federal government debt is too large to imagine. This has been attributed to continuous borrowing without a clear evaluation of the rising levels of the debts. The federal government has gone on a borrowing spree, a factor that has increased the amount of debt more than the country's gross domestic product. The current amount of debt is one of the most significant puzzles that the President and the Congress have failed to address effectively. The current debt has even superseded the worst moments of the country's economy tracing back from the great recession period.
According to Desilver (2019), the federal government has debts that have made it difficult to maintain the debt limits. The suspension of the debt ceiling means that there will be an increase in government spending to at least until the 2020 presidential elections. With the rise in the national debts, Haskins (2015) contends that the government will either have to reduce its expenditure or increase the tax burden to the people. The two options have significant impacts as the reduction of spending poised to affect critical services such as Medicaid. This means that with the current borrowing, the federal debt has risen beyond the limits.
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References
Desilver, D. (2019). 5 facts about the national debt. Phew Research Center . Retrieved from https://www.pewresearch.org/fact-tank/2019/07/24/facts-about-the-national-debt/ .
Haskins, R. (2015). The federal debt is worse than you think. Brookings . Retrieved from https://www.brookings.edu/opinions/the-federal-debt-is-worse-than-you-think/ .
