During the Cold War, individuals, businesses, and local governments appealed to Washington for help, and the federal government responded unprecedentedly. Lawmakers and two Presidents, Trump and Biden, have responded through the US Rehabilitation Law and the Payroll Protection Program (PPP), which provides “forgiveness” loans to small business owners.
Americans in the political arena need help, and the government has helped them. Providing safety and security is part of why governments exist in the first place, and in general, there have been relatively few voices arguing about helping families and business owners who are trying to survive in an unprecedented way. The outbreak has led to the permanent closure of three dozen small companies. If the government did not intervene financially, countless businesses would be closed forever.
The question now is debated in the capital of our country – how much is enough?
This is a key part of the ongoing debt crisis.
The government must limit the amount of debt that Congress can take to prevent excessive spending. Once the limit is reached, there is a fear that the US Treasury will not be able to invest more, so the government may adjust its utility bills. This trend could lead to a crisis in the US economy and the world market.
On Sunday, September 19, Treasury Secretary Janet Yelen called on Congress to increase the amount of money the US government is allowed to borrow.
“The United States always pays its bills on time, but the high level of agreement between economists and treasury officials will lead to a massive economic collapse,” said author Elaine.
In fact, since 1960, Congress has voted 80 times to increase or temporarily extend its debt.
“Raising the debt ceiling does not allow for additional expenses for taxpayer dollars. Instead, as we raise the debt ceiling, we are effectively agreeing to increase the country’s credit card balance, and in this case, 97% of this balance has occurred in previous conferences and presidential administrations. Even though the Biden administration does not allow any expenditure, we still have to deal with the debt ceiling. ” Wall Street Journal op-ed.
But Mitch McConnell and the Senate Republicans are digging their heels and saying they will not vote to increase the federal government’s $ 28.4 trillion debt. They are concerned that government spending is getting out of control. Along the way, New York Senator Chuck Schumer McConnell said he was “playing dangerous political games because he didn’t go to the plate.” Legislators now have only a few weeks to raise the federal debt ceiling before the treasury payments are delayed or lost. If that happens, it will hurt the US government’s credit rating.
what does that mean? For example, The Debt Debt Debate 2011 raised the standard and poor federal government credit rating from AAA to AA +, and did not return to AAA. As a result, severe stock market declines and financial-market disruption have been going on for months, says author Elaine. While the treasury has some short-term measures, long-term issues remain. The challenge is that if the federal, state, and local governments cut costs, the economy could shrink and lead to collapse – a negative impact on small businesses and the US economy as a whole.
According to the secretary of the treasury, neither delays nor defaults will be tolerated.
“The last 17 months have tested our country’s economic strength. We are getting out of trouble now. We must not turn our backs on ourselves, ”she wrote.
“Small businesses need no more economic insecurity,” said Bill Briggs, former director of SBA loan programs. Failure to raise the debt ceiling on time could hurt government jobs, such as capital markets, federal tax information, and securities.
Small businesses create the lion’s share of the private sector’s economy, support neighborhoods, and promote the development of women, minorities, and refugees. Entrepreneurs have endured a difficult year and a half as a result of the Covenant epidemic and the detention of millions of organizations across the country.
Small business owners now have to invest in their businesses – stocks, labor (in the area of labor shortages) and technological improvements needed to compete in the local and international markets. We cannot jeopardize their success.
Small business owners generally support a fiscal policy that prioritizes investment in small companies and local communities. At the same time, they choose budget discipline because they carry a heavy tax burden – both individually and collectively.
However, lawmakers must quickly decide how to stabilize the economy before we fall into poverty. The government must be financially liable to pay its debts, but it must also ensure that its costs are controlled. The main philosophical argument of our time is to associate the most demanding of governmentalists with financial responsibility and free market capitalism.