The article entitled “Dealing With Default” by Paul Krugman expresses the increasing fear of the United States Government going into default. Republicans have decided to raise the debt ceiling but the extension will be short-term, meaning that there is still a possibility of hitting the ceiling. Just recently in 2011, Congress had voted to increase the debt limit for the U.S. to $17.1 trillion, clearly showing their inability to stick to their budget. If the U.S. enters a general default after failing to meet its legal obligations, there will be dire consequences. These consequences include unpaid interest on bonds and delays in sending Social Security checks.
The result of the United States Government defaulting can only be a financial crisis. This is what we as college students, must do our best to avoid. If we mismanage our expenses and liabilities, we fall into a financial crisis that could ultimately lead to long-term debt. As college students we need to budget effectively, unlike what the government has been doing. This means being conscious of the amount of debt we have in terms of student loans, credit cards and cutting down our expenses in order to pay back the debt in a timely fashion. College students must acquire financial responsibility and accountability so that they can be masters and not slaves-more specifically debt slaves-to their money.
