Treasury Secretary Timothy Geitner says Congress has until August 2nd to approve an increase in the federal debt limit — enabling the Treasury to borrow more money — or the U.S. government will not be able to meet all of its financial obligations. Here, Northeastern finance and economics instructor Richard Goettle discusses what could happen to the economy if Congress and the White House fail to find common ground.
On Monday, Treasury Secretary Timothy Geithner told Congress the U.S. has reached its debt ceiling — the limit on how much money the government can borrow. Not only has raising this limit been at times a contentious political issue, it also raises larger issues related to the U.S. economy’s long-term health, says Kamran Dadkhah, associate professor of economics at Northeastern University.
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