Due to the increase in the national debt ceiling, it will be even more difficult for Americans to repay their debts. The cost of residents of the United States for it is comparable to the indicators of the crisis year 2011 – $ 20 billion, writer The New York Times newspaper.
“With the official data release months away, the last debt crisis in 2011 gives some clues. At the end of 2011, the debt crisis cost Americans $1.3 billion, and the costs continued to rise. Debt servicing costs, which the crisis made more expensive, continued for years, and one estimate could be up to $20 billion.
The publication notes that in 2011 borrowers began to incur higher costs for loans, and it’s worth the wait for now. In addition, it was stated that a slowdown in economic growth was not ignored.
The Republicans, who held a majority in Congress in 2011, demanded, after numerous debates, that President Barack Obama negotiate a reduction in the budget deficit in exchange for raising the national debt ceiling. The rise in the ceiling caused a crisis in the stock market. The crisis led to the most volatile week in financial markets since the 2008 crisis, when the stock market fell significantly. Stock indices collapsed in the US, Middle East, Europe and Asia. Investors lost trillions of dollars and the US credit rating was downgraded.
US President Joe Biden signed a bill on June 3 to raise the US national debt ceiling. According to the document, the state debt limit is suspended until January 1, 2025.