News

National Debt reaches staggering amount while administration prepares to ask for another debt ceiling increase

The United States national debt is nearing the size of the entire U.S. economy, meaning the amount of debt the government owes to its creditors is roughly equal to the value of all U.S. goods and services produced in one year (approximately $15.3 trillion). With this level of debt the U.S. is one of the few advanced economies to bear such a hefty burden. Greece, Iceland, Ireland, Portugal, Italy and Japan all face similar debts situations with several of those nations being at the root of the European debt crisis.

As the national debt reaches its $15.2 trillion limit; President Obama is expected to ask Congress to raise the debts ceiling another $1.2 trillion, in accordance with the debt limit legislation signed into law in August of last year. This is the third of the scheduled debt limit increases outlined in the agreement struck in August, which will keep the federal government running until the 2012 election. In accordance with the agreement, the president must formally request to increase the debt limit when the government comes within $100 billion of the current debt ceiling. Unless Congress votes to reject the measure, the increase automatically takes effect in 15 days. If Congress does vote to reject the increase the president could veto the legislation. Once the president formally requests the increase it will be seen if the House Republicans will attempt to block the increase as they did in September.

The Brea Chamber of Commerce is committed to keeping our members informed and advocating on behalf of business interests here in Brea. Members are encouraged to contact their state legislative representatives as well as the Chamber to ensure their voice is heard on legislative matters affecting the business community.