(RepublicanDaily.org) – Concerns and tensions have been rising as America’s national debt ceiling nears $32 trillion, leaving analysts to ponder whether it would “bankrupt” America, Forbes reported. Some political analysts picked apart House Speaker Kevin McCarthy’s budget plan, with The Washington Post saying it was “just like the old” budget plan, and analysts with The Hill reasoning that the plan would “increase the likelihood” of economic downturn.
The plan Republicans passed on Tuesday, called the “Limit, Save, Grow Act” will “raise the debt ceiling” with some contingencies, which political analysts with Moody Analytics reason could increase the likelihood of an economic downturn. This plan, however, is only just the beginning of what will likely be a long ordeal with Joe Biden.
Critics have claimed that McCarthy was steering a “clown car” into the debt ceiling crisis, NBC wrote. The House Speaker’s “tenure” was described as a “kaleidoscope of incompetence” by his critics.
Despite this criticism, Democrats had urged the President to resume talks with McCarthy about the proposed budget plan, USA Today reported. Among them was Senator Amy Klobuchar (D. Minnesota) told CNN that, in her view, Biden should negotiate on the federal budget, and that those negotiations should begin as soon as possible.
Banks, in the meantime, have warned that this debt ceiling could be reached sooner than anticipated, Reuters reported.
The debt ceiling debate in Congress comes as America faces a coinciding banking crisis. The banking crisis is having a “slow burn” impact on the economy as a whole, NBC reported. The banking crisis, which “erupted” just under two months ago, has reportedly become less of a “major broadside” to the whole of the U.S. economy, and more of a “slow bleed.” Analysts state that this will lead small banks across the U.S. to “lend less,” which will in turn, have a negative impact on “Middle America.”
Copyright 2023, RepublicanDaily.org