Between a Rock and a Hard Place: U.S. Fiscal Policy « iMFdirect – The IMF Blog
The government should concentrate on decreasing the unemployment rate before cutting any spending. Raising the debt ceiling now would help stimulate some growth, and relieve unemployment. After this, the government should concentrate on decreasing the debt to a sustainable rate, possibly and preferably, where economic growth is greater than the fiscal deficit.
Increasing the debt ceiling worked before and could work again. All that is needed is for politicians to stop playing blame games and negotiate a balance between government spending, raising the debt ceiling, and possibly decreasing taxes to job creating companies and increasing taxes to high income individuals who benefit from increased economic growth and expansions the most.