Republican Proposal to Balance the Budget Should not be Vetoed

Republican Proposal to Balance the Budget Should not be Vetoed
The current proposal of the Republicans to
balance the budget should not be vetoed. The national
debt is large and is of great concern to the economy.
The U.S. deficit is increasing to an immense sum on a
daily basis. If there is not a stop put to this, it
is likely that the government will default. The risk
of this may be greater then people realize, it would be
diastrous.
A default by the federal goverment on debt
payments would put a strain on the governments?
financial credibility that could not be easily erased.
In addition it would affect the securities? yeilds
which are a benchmark for home mortgage rates, along
with other interest rates that would sky rocket
throughout the county. The american dollar would be
pressured and lastly a debt default could cause
lasting damage to the future of debt sales.

A U.S. debt default arising from the increasing
budget that was once seen as remote, is now a probable
concern. As the November 15 interest payment for the
debt becomes due, the Clinton Administration has
warned that unless Congress gives authority to borrow
more money, they will run out. This example makes
it evident that the plan to continually roll over the
debt is not an effective one. An escalation of
commitment to continue to feed the debt in lieu of
taking away from it can have a lasting negative effect
on the entire economy. This risk is too detrimental
to be ignored.

Republican Proposal to Balance the Budget Should not be Vetoed 9.9 of 10 on the basis of 2014 Review.