The still unresolved disputes between representatives of the Republican and Democratic parties in the US over raising the public debt ceiling could bring the onset of the financial crisis in the country closer. A compromise cannot be found as such a solution will only help delay the default, but not help to avoid it. opens The words of Pavel Samiev, Managing Director of the analytical agency BusinessDrom, to Lenta.ru.
Republicans and Democrats cannot make a final decision on raising the national debt, because raising the bar will increase debt relative to gross domestic product (GDP). He said such a scenario would not benefit the American economy.
“The real question is whether to decide to raise the debt ceiling. Everyone understands that it is not an endless process even if it is revealed, and therefore there are important disagreements. If this happens, the level of public debt in the economy according to GDP and other parameters will also increase. Therefore, the decision has not been made yet,” he said.
May 27, Speaker of the U.S. House of Representatives Kevin McCarthy declarationthat the interest paid on the country’s public debt over the next 10 years will be comparable to payments made in the last 83 years. So far, the US national debt has reached very high values. It exceeded the size of the entire country’s economy and reached 120% of GDP.
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.