U.S. Government Debt Ceiling

What let the U.S. federal government shut down,is that Obama’s new health care?Fundamentally,it caused by the U.S. government budget crisis and huge problems with the debt ceiling.

U.S. debt ceiling is the total U.S. federal government debt amount in essence.The United States Congress has established statutory limits of that.However, the debt ceiling has always been non-existent in a long time,and during the expansion of the country,the statutory bond cap has constantly been raised.Since 1960,the debt ceiling has been raised 79 times,almost every eight months.The debt ceiling  seems never to pose a real threat to the United States .

U.S. Congress report shows that since Obama taking office,Congress has raised the debt ceiling for four times increasing the amount to $ 5.4 trillion Raising the ceiling without mention will bring much risks:If public debt ceiling can not be raised in time,the government will run out of money to pay the debt including interest and a variety of health care spending bill.However,if the United States continues to raise the debt ceiling with the crazy growth of U.S. Treasury bonds, it will destroy the balance of international American dollar market and continue to challenge the global credit lines and bottom line creditor tolerance.

U.S. Government Shutdown

The two parties of U.S. government reached an temporary agreement on the problem of “fiscal cliff” at the beginning of 2013.However,the country do not get rid of the shutdown because the U.S. Congress from both parties failed to resolve differences between the new fiscal year the government budget.The U.S. government’s non-core departments formally came to a standstill on October 1st.

Shutdown of the government has influence on millions of American people,about 800,000 federal employees will stop working and go back home,trails in Federal Court may be postponed,some public hospitals service will be suspended,national parks and other tourist attractions will be temporarily closed.

The Ministry of Finance has taken extraordinary measures in order to avoid defaulting on its debt,but it would only be effective before October 17th.After that  if government can not raise the debt ceiling, the U.S., the world’s biggest debtor will be unable to repay the debt timely.Global stock markets will suffer heavy losses,companies need higher funding costs.Both the U.S. and global economies are likely to be dragged and may even fall into recession.

The only solution that may ease the situation is that two parties approve Obama’s health care plan and raise the debt ceiling as soon as possible.

The Obama Health Care Plan

High spending,low efficiency and loss of equity,since continuously are the worst three problems of American Health Care System.The plan commits itself to provide benefit of health care for those people who do not have opportunity of getting the medicare in America before.Obama pays more attention on disadvantaged groups in society.

Meanwhile,interest of the employers and the bourgeoisie will be visibly harmed because they have to pay for the extra expenditure for universal health care.The slide in standards and aggravation of financial burden bring them much concerns and averseness of Obama’s plan.This becomes the strongest resistance of the promotion of Health Care Plan.However Obama devotes plenty of effort in this plan and wants to make achievements during his tenure to increase his public approval rate.Although adjustment in health care plan will improve current situation of medicare system in USA,it inevitably causes inverse problems in the deficit and debt of government.

The political battle between two parties changes the plan into a brand different one.People who do not have health care still have problems with their bills of medical treatment and there is remaining unfairness among US citizens of different classes.Government should concentrate on real benefit for people instead of endless arguing.