Government ''kicking the can down the road''
Wed, 16 Oct 2013 21:52:35 GMT —
As the government shutdown drones on, the deadline for the county's debt ceiling is casting a looming shadow.
"You have these conflicting goals, the individual goals vs.. the nations goals that conflict. And it's hard for them[politicians] to be able to say, 'I'm not going to worry about myself, I'm going to worry about the country,'" says University of Toledo Associate Professor Gbenga Ajilore.
A bipartisan agreement is reported to have been reached pending a vote. The decision would be made with little time to spare.
Ajilore says, "It's natural human tendencies. I mean, I could assign my students a paper due December 1, and every single one of them is going to start on November 30. We all wait until the last second because it's a deadline, and that forces us to act."
However, an agreement will only extended the debt ceiling until January 15. It's like pushing the countries debt to the edge of the cliff, just to pull it back ever so slightly.
The American public can see this happen time and time again on Capitol Hill. A band aid is put on a broken bone. The phrase "kicking the can down the road" is repeated on news stations.
To be fair, kicking that proverbial can is much better than the alternative of not being able to pay the country's bills.
Ajilore explains, "The biggest impact is our credit rating. Our bonds are going to be down-graded, and it will be more expensive to borrow. Higher interest rates will have an impact on mortgages, car loans, and things like that."
He says there is some reserve money as a cushion, but that will only last about two weeks, in this case, until the end of October.