This website uses cookies to ensure you have the best experience. Learn more

The Debt Ceiling Crisis Of 2011

2512 words - 11 pages

In May of 2011, the United States reached its debt ceiling cap which could have caused major issues to the American government and economy. The debt ceiling cap is the amount of money the government can legally borrow to pay off its debts owed to the public including U.S. bonds and government trust funds such as Medicare and Social Security. The first debt ceiling limit was set in 1917 at $11.5 billion and has been raised 74 times since 1962. Ten of those times have been since 2001. If the debt ceiling wasn’t raised U.S. Treasury would not have the authority to borrow any more money which is a problem because the government borrows to make up the difference between what it spends and what it ...view middle of the document...

Sahadi’s (2011) comments further reinforce the caustic nature of the dialogue when he states, “The rhetoric about whether to raise the ceiling and under what conditions has been loud, harsh and, at times, misleading. Exasperatingly, it’s far from over”(p.1).
According to the above reports, the dialogue was about winning, rather than coming together to find an agreement both sides could be happy with. They didn’t really care about hearing the views of the other side, but their language seemed to be one of intimidation and invalidation of their opponent’s views as they continued to criticize with sometimes misleading, harsh, and bitter accusations hoping to push their agenda rather than engage in healthy, useful dialogue and find compromise.
According to Crucial Conversations, a conflict arises when the parties involved don’t share the same personal pool of meaning. In other words, their opinions, thoughts, experiences and feelings are in conflict. In order to negotiate a conflict, both parties must feel safe and free to add their personal pool of meaning to the shared pool of meaning. This shared pool of meaning brings in more accurate and relevant information which can lead to better choices in the negotiation process (Patterson, Grenny, McMillan & Switzler, 2012, p.24). During the Debt Ceiling Debate, it appears that both sides were adding their opinions to the shared pool of meaning, but there may have been times when information was withheld or disrespectfully conveyed to push or intimidate the other side to accept their political views and at times, the goal seemed to be to villainize and humiliate the opponent, rather than solve the debt crisis in attempts to serve their political agendas. Both sides were doing their best to defend their positions and reputations in fear that if they did not their party would lose American support and the election. At times, it appeared that there was a lot of confusion in who said what and a lot of reneging. Everyone in the debate took their turn in shifting their positions as the talks continued to drag on. At one point Speaker John Boehner accused President Obama of moving the goal posts. On the other side, the Republicans in terms of counting savings towards a balanced budget included one trillion in savings from the Iraq and Afghanistan wars ending, but initially told the Democrats they couldn’t count the phantom money that was not going to be spent anyways when they had proposed a budget that counted the same savings (Newton-Small, 2011). The parties brought to the table a mutual definition and understanding of debt ceiling and were mostly in agreement that if it wasn’t raised it would have dire consequences on our already weak economy, but the Republicans were hesitant to just sign off on raising it without negotiating significant government budget cuts to address the national debt problem. The President and other Democrats agreed with needing to balance the budget and cut spending, but...

Other Papers Like The Debt Ceiling Crisis of 2011

Can Austerity Lead Off the Debt and Crisis? Did It Work in Baltic Countries?

2317 words - 10 pages Can austerity lead an economy out of a debt crisis and recession? Was it successful in the Baltics? “Austerity describes policies used by governments to reduce budget deficits during a period of adverse economic conditions.” These policies may include combination of spending cuts or/and tax increases, or a mixture of the two. But does applying austerity helps countries to grow out of debt? The thesis of this essay is that austerity

The Real Causes of the Syrian Crisis

971 words - 4 pages The Real Causes Of The Syrian Crisis The Syrian conflict is one of the most top issues at the moment, because now, after that in Syria was used chemical weapons it affects all worldwide. The Syrian civil war or Syrian uprising or also known Syrian crisis is an ongoing armed conflict in Syria between forces loyal to the government and those seeking to out it. It all started 15 March, 2011 with demonstrations which were part of the wider

The Beginnings of the Sectional Crisis

871 words - 4 pages The Beginnings of the Sectional Crisis During the antebellum period, the North and the South were complete opposites. This led to each side viewing itself as superior and viewing the other as "backward." Each side believed itself to be superior, in all aspects, to the other. The reasons for these opinions can be found in the different economic, social, and cultural systems found in these two regions. The Southern economy was primarily

Causes of the Indonesian Financial Crisis

1195 words - 5 pages billion per year from 1994 to 1996. In 1997 before the crisis, FDI was US$16 billion. * In 1991, foreign debt increased 66% from 1988. In 1992, the total was US$80 billion, 30% was private commercial loans. (exhibit 2) * Low inflation and stable currency. Relatively low unemployment of 4% out of 85 million workforces. Contributing Factors * Companies and financial institutions borrowed in foreign currencies mainly US dollars and Japanese

The Impact of Asean Crisis in Malaysia

4799 words - 20 pages capital continued to exit, resulting in a terrible combination of increase rapidly trough import bills, reduction costs of servicing the foreign debt of the private sector, sensitive interest rates spiking economic activity, and a chain reaction of bankruptcies. In this project, we focus more on crisis that happen in Malaysia. Before the crisis started in Malaysia, Malaysia had a large current account deficit of 5% of its GDP. At that time

The Russian Ruble Crisis of 1998

1573 words - 7 pages The Russian Ruble Crisis of 1998 is termed as among the worst financial crisis to hit the Russian economy. The Crisis is believed to have been triggered by a number of factors. The Asian financial crisis of 1997 is a major cause of the crisis as it led to declines in the world commodity prices (Owyang, & Chiodo 2002, p. 7). Just to be appreciated is the fact that Russian economy was heavily dependent on oil. There are other reasons such as

Crisis And Aversion - The Story Of Kennedy

1590 words - 7 pages Crisis and Aversion - The Story of Kennedy Regarding presidents that have come to pass in the United States, one stands out as the finest. John Fitzgerald Kennedy, known simply as JFK to the public, partook in numerous accomplishments making him one of the best leaders in the history of America. As the only president to win a Pulitzer Prize, Kennedy stands unchallenged with the amount of achievements in his single term. He established the

The Crisis of Crimea and Ukraine

3916 words - 16 pages The Crisis of Crimea and Ukraine Key Lessons for President Obama from Presidents Reagan and Clinton [pic] SOURCE: AP/Greg Gibson President Bill Clinton reads a statement at the conclusion of the NATO 50th anniversary summit, Sunday April 25, 1999, in the Ronald Reagan Building in Washington. By Rudy deLeon and Aarthi Gunasekaran | May 14, 2014 In the past two months, the Crimea and Ukraine crisis has grown. Russia annexed the Crimean

The Historical Roots of Our Ecological Crisis

1091 words - 5 pages beliefs about our nature and purpose; that is by our religion. In 1967, a classic article entitled the “The Historical Roots of Our Ecological Crisis’’ was published by Historian Lynn White. In his article, Christianity has been called arrogant and has been charged with being the historical root of our ecological crisis, therefore bearing a huge burden of guilt for our current ecological crisis. This controversial piece of work has motivated

A Study on the Factors Affecting the Failing Grades of 2nd Year and 3rd Year Tourism Students in the University of the East-Manila for S.Y 2011-2012

2380 words - 10 pages University of the East, Manila College of arts and sciences A Study on the Factors Affecting the Failing Grades of 2nd year and 3rd year Tourism Students in the University of the East-Manila For S.Y 2011-2012 In Partial Fulfillment of the Requirements in Tourism Research Method Tour 112 By: Honey Grace R. Gatasi July 2012 Chapter 1 THE PROBLEM AND ITS BACKGROUND Introduction Being in school is one of the

The Causes And Consequences Of The Russian Crisis Of 1998

2311 words - 10 pages in economic growth should be taken as a warning signal. Works Cited • Russian Financial Crisis:- By Wayne P.J. McArdle of Paul, Hastings, Janofsky & Walker LLP October 15, 1998 • Lessons from the Russian Crisis of 1998 and Recovery pp. 406-438 By. Brian Pinto, Evsey Gurvich and Sergei Ulatov • Aizenman, Joshua, Kenneth M. Kletzer, and Brian Pinto. 2005. “Sargent–Wallace Meets Krugman–Flood–Garber, Or: Why Sovereign Debt Swaps Don't

Related Essays

Causes Of The Sovereign Debt Crisis

2475 words - 10 pages financial instruments. For example, a vast amount of credit created real estate bubbles in Ireland (Finn, 2011) and Spain. Those bubbles made up an artificial stimulus by the neoliberal regime to boost employment. Debt therefore was generated in the private sector: it was thus not public debt that determined the crisis for those countries, but private debt as the result of financialisation. According to Martin Wolf, “Estonia, Ireland and Spain had vastly

Causes Of Euro Debt Crisis Essay

1257 words - 6 pages the central government to the debt holders. As a result, with a high level of the debt-to-GDP ratio may imply that the country is less likely to repay the debt holders but higher chance to default on its debt obligations. Greece, contributing about 3.3% of the annual GDP towards the European Union (Central Intelligence Agency, 2012), with a 165.3 % of debt-to GDP ratio in 2011, was responsible for the outbreak of the Euro debt crisis

What Are The Implications And Problems That The Eu Have Faced Because Of The Recent Eurozone Debt Crisis? What Does The Future Hold?

2954 words - 12 pages suffered because of heavy borrowing practices, property pebbles and living above their means. The Eurozone debt crisis started because Greece who had borrowed heavily in international capital markets over the past decade were turned against by investors this is because Greece in 2009 admitted that they had double the amount of debt that was allowed in the Eurozone limit. Ratings agencies started to downgrade Greek bank and government debt, and there

Analysis Of Cafr 2011 Of The City Of Troy

2008 words - 9 pages infrastructure, net of debt. The increase in capital assets during the year was attributing to the excess of additional in streets, drains and water/sewer systems over the recognition of depreciation. The City of Tory’s debt rating is excellent. The City maintains a AAA rating on unlimited tax general obligation bonds by Standard and Poor’s. The City of Troy’s bond indebtedness totaled $42.8 million at June 30, 2011 a decrease of $4.4 million from the prior