Steven r schwartz hearst corporation3/28/2024 ![]() ![]() An agreement to raise the ceiling was reached two days before the federal government would have defaulted, but the stock market still lost 17% of its value for more than a year. ![]() As the likelihood of default increased, Standard & Poor's took away the United States' hallowed AAA rating (which has still not been restored). Action to end the pending debt crisis is necessary now. Absent a resolution, the government is likely to run out of money as soon as June 1. We write to emphasize the potentially disastrous consequences of a failure by the federal government to meet its obligations. At present, the country is facing another such challenge. In recent years, that commitment has been challenged from time to time as Congress has periodically increased the limit on the nation's overall indebtedness to accommodate persistent budget deficits. ![]() Since its founding, the United States has held honoring its debts as among its most important governing principles. Partnerships for New York City: Open Letter to the President & Congressional Leaders from Concerned Business Leadersĭear President Biden, Senate Majority Leader Schumer, Senate Minority Leader McConnell, House Speaker McCarthy and House Minority Leader Jeffries, They also noted that "Much worse will occur if the nation defaults on our debt obligations, which would weaken our position in the world financial system."Īs President Biden has made clear, default would be catastrophic for the American people and is not an option. Although the American economy is generally strong, high inflation has created stresses in our financial system, including several recent bank failures." Today, business leaders called on Congress to take action to avoid defaulting on the national debt, writing that "Failure to resolve the current impasse could easily have more negative consequences. ![]()
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