The United States of America already reached its $31.4 debt ceiling. The debt ceiling is the self-imposed limit on how much debt Congress allows the federal government to have. If Congress does not raise or suspend the debt ceiling, the U.S. could default on its debt, which would also impact financial markets and the economy. However, America never defaulted on paying its debts. This is something that is embedded in their culture. A person is not worth anything if one can’t have the benefit of having a credit card debt. That is not the case in the Philippines.
In the Philippines, the country’s external debts are mostly spent on building infrastructures like roads, bridges, transportation systems, schools, hospitals, and many more. These are self-sustaining expenses. Therefore, the loans from the ADB, IMF, World Band, Japan, and the like can easily be paid through the income they generate. This is specifically the wisdom of the late President Ferdinand E. Marcos, Sr. in the 1970s.
In the present time, his son, President Ferdinand R. Marcos, Jr. is set for another economic success with the completion of the subway in 2028. Many more projects are in the lineup that started even during the previous administration. So, loans are basically spent wisely in the country. This is contrary to some media reports.
