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Essay / The Dangers of the Debt Ceiling - 1152
Introduction: This article will focus on how the debt ceilings of countries around the world can affect international management, hospitality and Aruba. The paper will examine the US debt ceiling. From the beginning of the United States until 1917, Congress voted and decided each time whether it would issue bonds or enter into agreements with countries that would leave the United States in debt. Since then, Congress has set limits on this government debt, known as debt limits, and has also since exceeded their limit several times. This article will examine how these debt limits could affect international leaders in the future, while showing examples of past debt crisis situations. The paper will attempt to answer the following questions: • What is a debt ceiling? • What are the potential dangers? • What can be done to try to resolve these problems? • What does this have to do with international management? It will have two main parts with subsections under each. The first part will basically cover the history of the debt ceiling primarily in the United States. Next, it will examine the most recently adopted debt ceiling in the United States, as well as its possible consequences and possible solutions. The second section will cover the relevance of the topic to international management and Aruba. Relevance for international management: When we talk about debt limits, we generally mean the debt of government agencies. These debts, although not owned by international managers, can affect their appearance and/or work. Depending on whether a manager decides to choose a new location or whether they already have a presence in a location, they may look at the issue in different ways. As mentioned earlier, the main problem discovered in the research was debt default. Other ...... middle of paper ...... to make more money allowing the government to be able to reduce debt levels. Works Cited De Rugy, V., & J. Fichtner, J. (May 2011). Mercatus on politics: the debt limit debate. Retrieved from mercatus.org/sites/default/files/publication/Debt Limit.MoP_.Fichtner.deRugy.5.26.11.pdfBUTI, M., & CARNOT, N. (2012). The EMU debt crisis: first lessons and reforms* The EMU debt crisis: first lessons and reforms. Journal of Common Market Studies, 50(6), 899-911. doi:10.1111/j.1468-5965.2012.02288.xAustin, D. & Levit, M. (October 15, 2013). The debt ceiling: history and recent increases. Retrieved from http://www.fas.org/sgp/crs/misc/RL31967.pdf Levit, M., Brass, C., Nicola, T., and Nuschler, D. (September 2013). Reaching the debt limit: context and potential effects on government operations. Retrieved from http://fpc.state.gov/documents/organization/214922.pdf