California raises minimum wage to $10.....good for them.

According to CNN’s article, the national debt ceiling has been having some issues lately.  America seems to be having trouble getting enough money to pay off its debt in full, so controversy is arising about the possible outcomes of such an issue. According to the article, the debt ceiling is the amount of money that the Treasury is allowed to borrow, and because the ceiling is so low, and America doesn’t have enough on its own, we’re facing trouble. After trying to decide how to solve the problem, The US Treasury is now going to have to decide on who to pay off first, but many are saying that the Treasury is not made to function by “picking and choosing”. However, America really only has two choices; we can pay off certain debts and ask for a delay with others, or we can delay all debt in general and wait until we get enough money to pay everything back in full. While reading the paragraph I noticed that when describing the possible solutions, one of them was to pay off certain debts and paying the rest off later, and then I realized that it sounded familiar. Wouldn’t that scenario technically entail America to sort of file for bankruptcy? If so, how much money would America lose by doing so? If we had a more stable economy, we wouldn’t necessarily have this problem because money would be cycling through the system better. And as for picking and choosing, how is the government to say what is most important to pay off? Like the article states, the government would “be subject to accusations of politically choosing winners over losers.

To say nothing of the fact that paying some but not all of what the federal government owes would harm the economy and likely upend markets,” and we don’t want that on top of everything else. Also would there technically be opportunity cost when deciding who to pay off and who to delay payment with? For example, the opportunity cost of paying off these people would result in not paying off these other people. Regardless, many are to believe that this debt ceiling will hurt the reputation of America and cause great debate on the county’s motives.