US wants to avoid infidelity as Congress approves high debt | Business and Economic Affairs
The $ 2.5 trillion increase comes just days after experts say the US could not repay its debt.
The United States Congress has changed its approach to avoid paying off debts that experts and officials have said they would have incurred dangerous consequences on the national economy.
Earlier Wednesday, the House of Representatives granted a $ 2.5 trillion increase to the federal debt bond. This came just hours after the Senate re-introduced the measure, which could possibly prevent the next debate over raising government debt limits until 2023.
“There is no brinksmanship, no failure to repay the loan, there is no risk of further economic collapse: trustworthy governors have won on this very important issue,” Senate Majority Leader Chuck Schumer said on the ground before the vote. “Americans can breathe easily and be sure there will be no problem.”
The law was passed in both chambers following the parties, with only one Republican voting in favor. He is expected to sign into law with President Joe Biden on Wednesday.
The US currently has about $ 29 trillion in debt. The official loan on Wednesday will be $ 31.5 trillion.
The passage followed 11 hour contract between Republicans and Democratic brass who saw legislators develop a unique approach that allowed the credit limit to be extended by a simpler majority in each room, enabling Democrats to pass the law with Republicans remaining dissent.
Nearly 80 years ago, legislators set limits on the amount of federal debt. The boundaries are always removed, often with little celebration.
When both see a debt increase, it pushes it down the line as the US does credit balloon, as a political poison, Republicans are expected to use the issue to undermine the so-called Democratic “overspending” in the upcoming 2022 midterm elections.
The Bipartisan Policy Center, an independent tank based in Washington, has predicted that the US will not be able to repay its debt by December 21st.
Treasury Secretary Janet Yellen, meanwhile, set a deadline early in the business day Wednesday.
Instability is expected to cost about 6 million jobs and $ 15 trillion in household income, as well as increase housing costs and other debt.
The US spends more money than it collects, so it borrows through the issuance of Treasury bonds, which are government securities purchased by individuals, organizations and countries.
“Dealing with debt is a huge responsibility for the government,” the White House said in response to a resolution passed by Congress.
“The enactment of this law will allow the Treasury Government to provide for subsidies and tax cuts that Congress has already approved and to keep its promises without compromising or damaging our economy and American families.”
