Kenneth Rogoff

When some new members of Congress recently said they oppose raising the U.S. debt limit, it triggered warnings of "catastrophic consequences." Indeed, the result wouldn't be pretty. But here's what's at stake as the country's debt burden swells every year.

With the Fed adopting a more a pessimistic view, the revival has been swift in calls for the federal government to do more to help spur growth. But what can Washington do, and would it be counterproductive?

Just call it another sign, albeit a modest one, that the recession may be bottoming. The private sector cut only 491,000 jobs in April, according to data compiled in the ADP National Employment Report (pdf). Economists surveyed by Bloomberg News had expected private employers to cut 645,000 jobs in...