![]() ![]() Instead, they have argued that Republicans should raise their spending cut objectives during budget negotiations, not over the debt ceiling.Īn outright default - a delay of payment of interest or principal of U.S. Democrats oppose negotiating spending cuts over the debt ceiling. House Democrats argue that Congress should raise the debt limit without conditions. On April 26, Republicans passed legislation in the House of Representatives that would raise the debt ceiling by $1.5 trillion, but mandated $4.8 trillion in spending cuts over the coming decade. Has US has ever defaulted on its debt? Actually, yes four times, to be exactĭoc’s Prescription: Prolonged inflation, banking crisis dims outlook for world economy federal government would not have the means to continue all of its services.”Īt Risk: 'I don't have anything in my refrigerator': GOP debt ceiling plan would cut SNAP benefits dollar, causing the economy to weaken quickly. Treasury secretary, wrote in a letter to Congress earlier this year: “Investors would lose faith in the U.S. The amount of the damage depends upon on how long the situation lasts, how it is managed, and the extent to which investors alter their views about the safety of U.S. government has never defaulted on its commitments, the dire economic consequences are uncertain. The failure of our government to make timely payments on its obligations has significant downside.
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