The stakes were high in the country’s latest debt-ceiling drama—yet the negotiations have brought limited results
must run indefinitely and therefore never conclude satisfactorily. So it is with the latest episode of a long-running Washington soap opera—its roughly biennial—which is wending towards a predictably short-lived conclusion. Having threatened the world with a sovereign default and financial disaster in order to achieve their aims, Republicans in Congress have gathered modest concessions from President Joe Biden and agreed that America ought to honour its obligations, after all.
Totting up the full economic impact of the deal thus points to trifling outcomes. Michael Feroli of J.P. Morgan, a bank, estimates that it will lower federal spending by about 0.2% of’s prior baseline. That is much smaller than the 0.7% reduction in 2011 following a debt-ceiling standoff during Barack Obama’s presidency. The welcome news for Mr Biden is that the downside from the cuts is likely to be scarcely noticeable.
Two parts of America’s budget are most critical to defusing its fiscal problems. The first is its entitlement spending—notably, state-provided pensions and medical insurance for the elderly. These already account for nearly two-thirds of federal expenditures, and are set to expand as the population ages. The other is tax revenues, with the American government taking in considerably less as a share ofthan most other high-income countries.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Why food prices are so high right now - and will happen as food inflation falls slightly🛒 A £20 food shop a year ago equates to a little over £23 on average for the same items today ⬇️ AlannahFrancis1 explains why
Read more »
Old industrial cities can be central to America’s economic future\n\t\t\tLet our global subject matter experts broaden your perspective with timely insights and opinions you\n\t\t\tcan’t find anywhere else.\n\t\t
Read more »
Horrifying moment car 'with mum and daughter inside' flips on Scots high streetFootage shows the grey Cupra crossover mounting the side of a blue Vauxhall Corsa and rolling over into the road.
Read more »
Russia’s Seaborne Oil Exports Dip But Remain High | OilPrice.comRussia’s seaborne oil export volumes are still significantly higher than in February when the country announced a 500,000 bpd cut.
Read more »
Asda/EG: property keeps Issas’ financial high-wire act in balance\n\t\t\tLet our global subject matter experts broaden your perspective with timely insights and opinions you\n\t\t\tcan’t find anywhere else.\n\t\t
Read more »