Journal of Emerging Economies and Islamic Research
Volume 2, Number 1, Year 2014
The purpose of this paper is to shed some light on the on-going debate about the United States’ debt level and how U.S. lawmakers are attempting to resolve it. On the surface, it seems like they are not working together to resolve the issue, but further complicating it with various tactics, such as the government shutdown. That raises the question, “why is this the case?” to which the answer can be found through the understanding of the American political system and the way it was founded. It should be noted that many leading economists have questioned the very idea as to why we are making a big deal about the U.S. debt issue and assert that the U.S. does not have a debt crisis to begin with, and the issue is simply made up for political reasons. Many leading economists have a position on this argument and they strongly believe that their position is the correct one. The objective of this paper is to highlight those views as well as share its own view on the important topic while keeping an eye on why the U.S. political system functions the way it does.