From Girish Modi, Decatur, GA
America is the only country in the world that spends more money than it collects in taxes. That’s is why every few years it needs to raise the “debt ceiling” so that it can issue more treasury bonds in order to pay for the expenses. If it cannot manage its finances, the government will default on the interest payments on the bonds, which will send jitters in the financial markets around the world and destabilize economy of many nations.
Since Biden took office, America has spent 6 trillion dollars in COVID relief alone, which caused too much money floating around, raising not only interest rates but also wages and consumer prices.
This year Congress is grappling again with raising debt ceiling to a new height. However, House Republicans who have narrow margin will try to make it difficult passing of the budget; because they want to appeal their rich donors and eye on next year’s presidential election which they hope to win after convincing swing voters.
It is not going to happen. Biden’s game is typical Democrat Party’s popular agenda, which is to take on the rich and Big Pharma and give to middle-class, without reducing social programs such as Medicare and social security, though this solution will not help reduce the debt in a long run.
The Government should actually cut defense spending, which is more than GDP of many countries. It too will not happen because Biden is keeping alive imaginary threats of conflict with Russia and China.
My prediction is that the debt-ceiling imbroglio ultimately will prove politically damaging for the GOP’s House majority. In other words, Biden’s reelection and Democrat’s control of both houses after 2024 election will be guaranteed.
(This submission has not been edited.)