Kevin Gallagher on the debt ceiling crisis
In an opinion piece for the British newspaper The Guardian published in May, Boston University international relations professor Kevin Gallagher wrote why it’s important that the U.S. raise the debt ceiling.
“The US should raise the debt ceiling and increase government spending toward infrastructure and green technologies in order to expand the economy. Without growth, the US won’t ever be able to generate full employment and pay back its debts.
“Worse still, if the Republicans drag out the process, the results would be disastrous both in the US and across the globe. If the US started missing payments on interest or principal, interest rates would jump for new bonds. For evidence, just look at Greece, Portugal and other heavily indebted nations. A rise in rates would put a halt to the fragile recovery by choking off credit to businesses and households.”
Gallagher wrote on his Facebook page that he “wrote this piece before the debt ceiling debate got as silly as it is now, and I still support what I said.” He told Professor Voices, “As Congress continues to threaten debt default, they should examine the global implications.”
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