The issue reversed urgency. If the debt ceiling was not increased before today, the United States was at risk of payments with its creditors. It would have been an unprecedented situation that would leave world finance in uncharted territory. Both parties believed that increasing the debt limit is harmful, but recognized that failure to do so would plunge the US economy into a depression.
The project was approved in the House of Representatives with 221 votes in favor and 209 against After being authorized hours before by the Senate, it is now ready to receive the signature of US President Joe Biden and take effect.
The increase is necessary in part to cover debt incurred during Donald Trump’s Republican presidency, when it rose by about $ 7.85 trillion, in part through tax and spending cuts to combat the COVID-19 pandemic.
Republicans, who oppose raising the debt ceiling and control half of the 100 Senate seats, have tried to link the vote to Biden’s $ 1.75 trillion “Rebuild Better” bill to bolster the network. of social security and fight against climate change. “This is about paying off the debt accumulated by both parties, so I am pleased that Republicans and Democrats came together to facilitate a process that has made it possible to address the debt limit,” Schumer said in the Senate.
Senate Finance Committee Chairman Ron Wyden told reporters Tuesday that he would push to remove the borrowing limit to avoid future political clashes over the recurring need to increase it.
Source From: Ambito
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