Loading...

Biden cries out: Government shutdown will cause U.S. economy to crash

Biden cries out: Government shutdown will cause U.S. economy to crash

Contents

Share link:

TL;DR

  • President Joe Biden and Congressional leaders are hustling to prevent a government shutdown, aiming to pass spending bills before the March 1 deadline.
  • Major disagreements remain on funding for Ukraine, Israel, and the US-Mexico border, causing tense discussions among leaders.
  • Biden has warned that a government shutdown would significantly harm the U.S. economy and stressed the need for bipartisan solutions.

President Joe Biden and Congressional leaders are racing against the clock to prevent a government shutdown. They’re trying to get spending bills passed to keep things running after March 1. Despite their efforts, there’s a big divide over funding for Ukraine, Israel, and the US-Mexico border. Senate Majority Leader Chuck Schumer mentioned these talks were super intense, unlike anything he’s seen before.

Biden’s been upfront, saying if the government shuts down, it’s going to hit the economy hard. He’s pushing for everyone to work together, across party lines, to sort this mess out. But it’s not that simple. Some folks in the House, especially the hardliners, want to use this moment to push their own agenda on stuff like abortion, immigration, and climate change. This isn’t the first time we’ve been on the edge of a shutdown; it’s becoming a bit of a pattern, and it’s even got the folks who rate how creditworthy the US is, like Fitch Ratings and Moody’s, pretty worried.

Republican leaders, including House Speaker Mike Johnson, have been saying no more temporary fixes. They want to tackle these issues head-on, even if it means risking a shutdown. But Johnson also seems to think they can avoid it altogether.

While all this is going on, they haven’t even shared the details of their spending plan yet, and the House is on a break. They’re cutting it close, with deadlines looming and parts of the government at risk of running out of money by early March.

The impact of a shutdown could be big or small, depending on how long it lasts. Economists are saying it could slow down the economy a bit more every week it goes on. But so far, the stock market isn’t too worried.

Then there’s the whole situation with Ukraine and the border. Schumer, fresh from a trip to Ukraine, is trying to get Johnson to ease up on the border stuff so they can get aid sorted for Ukraine. But Johnson’s sticking to his guns, saying the border’s the top priority.

This stalemate is holding up support for Ukraine, which is running low on ammo in its fight with Russia, and for Israel, which needs help after an attack by Hamas. The meeting at the White House, which even the CIA Director Bill Burns attended, shows how urgent this is.

But let’s not forget about the border. It’s been a major talking point, with Biden and former President Donald Trump planning visits to Texas. Trump’s blaming Biden for a rise in border crossings, and it’s becoming a key issue for voters.

Now, let’s talk about the economy – it’s actually been doing pretty well. The latest reports show the US economy grew at a 3.2% pace in the last quarter of the year, which is pretty solid. Consumer spending is up, which is a big deal since it drives about 70% of the economy. Local government spending and exports are also doing well.

Even with all the worries about inflation and interest rates, the economy’s been growing steadily. Inflation’s easing up a bit, which is good news. And looking ahead, the US is expected to keep outpacing other major economies.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Share link:

Jai Hamid

Jai Hamid is a passionate writer with a keen interest in blockchain technology, the global economy, and literature. She dedicates most of her time to exploring the transformative potential of crypto and the dynamics of worldwide economic trends.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

China's friendship with Iran should be the last thing on its mind
Cryptopolitan
Subscribe to CryptoPolitan