June 24, 2024

Taylor Daily Press

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US Congress agrees to increase debt temporarily ...

US Congress agrees to increase debt temporarily …

The U.S. Congress on Tuesday gave the green light to temporarily raise the U.S. debt ceiling until the end of this year. Let’s see what happens next.

The US government was approaching the limit of the total amount it could borrow. Unless the $ 28.4 trillion ceiling is raised, the United States will not be able to meet all of its financial obligations by October 18.

The ceiling is now $ 28.9 trillion, pushing the deadline to December. In this way it was avoided that the United States could not meet all financial obligations for the first time. Without raising the credit limit, the U.S. government would be temporarily technically bankrupt. The United States can no longer repay all its debtors because it cannot raise extra money in the market.

Party lines

“We have temporarily avoided the crisis and avoided next week’s deadline, but members of Congress in December must put the country ahead of the party and avoid mistakes,” Democrat Richard Neal said.

Republicans and Democrats must take full responsibility for raising the debt ceiling because their party wants to spend trillions of dollars on social programs and the climate crisis.

However, Democrats believe that during the administration of former Republican President Donald Trump, more lending power was needed to offset the cost of tax cuts and spending plans.

Senate Republican leader Mitch McConnell wrote a letter Friday to Democrat Joe Biden. Republican leader Trump sharply criticized McCann after the Senate vote on the debt ceiling.