The United States is currently facing a political standoff as negotiations concerning the nation’s debt ceiling are still underway. The conversations surrounding the debt ceiling policies of the country are spearheaded by none other than the current leader of America, President Joe Biden, and the Republican Party.
As the deadline to raise the debt ceiling grows closer, back-and-forth exchanges between the Biden administration and the Republican side have been growing more intense.
With the Republican vote towards raising the debt ceiling being decided if Biden will agree to some part of the party’s proposals when it comes to raising work requirements for various government benefits and spending cuts for the Biden administration, talks continue between both sides in order to come to an agreement before the country reaches the deadline.
The latest development of negotiations between the two sides is at a standstill. And the Treasury continues to deplete its cash reserves in order to pay off all the outstanding debt that it can manage before the deadline nears.
The debt ceiling is basically the maximum limit of how much can the American government borrow from the public through the Treasury by issuing bonds and other forms of securities which the current administration can get money from in order to pay its current debts.
When the debt ceiling is hit by the American government, the nation can potentially be threatened into defaulting on its payments — lowering the reputation of the country towards its investors both locally and abroad.
Not only that, prices will begin to soar and employment rates will begin to plummet. The endgame of all these negative outcomes would be an economic recession that can change the fate of all Americans.
While all of this doom and gloom sounds depressing enough, raising the debt ceiling of the country has been a regular thing for decades now. Since the topic remains to be a major issue whenever the deadline for debt payments draws near, debt ceiling negotiations have been a key political tool used by both political parties.
As the deadline approaches in less than two weeks, both sides of the discussion are pressured now more than ever to come to an agreement between their proposals in order to save the country from reaching a default.
It is without a doubt that raising the country’s debt ceiling is the utmost priority at the moment and a compromise should be met as soon as possible as this political and economic saga continues to unfold.
By Neil Gregorio
Neil Gregorio is a graduating university student who writes as a hobby; when he is away from the keyboard, he spends his time watching Japanese animated shows and jamming out to his favorite rock music.
LinkedIn: https://www.linkedin.com/in/neil-gregorio/
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