The political situation became increasingly precarious in the United States before the midterm elections. And the crisis is far from over because Republicans, who enjoy a slim majority, are committed to their economic plan. The US has already hit the debt ceiling and the Republicans are adamant that they will use it as leverage to introduce significant cuts in social spending.
This is a cause of worry for many Americans, as they saw the last Republican president try to overthrow democracy only two years ago. Since then, the situation has not improved because the Republicans now enjoy having the lead. If they are successful in their plans, America will become even more polarized, reported Floricua, a Courier Newsroom publication.
The economic recession caused by the pandemic and the Ukrainian war has already caused mass inflation and a hike in the cost of living. Republicans have made it quite clear that they are not happy with the economic situation. The irony, however, is that while they have made their anger known, they have not been as vocal about their economic plans.
The Courier Newsroom publication has provided an overview of the Republican’s economic plans, and things do not seem promising for American families under their control.
The tax cuts introduced under Trump’s administration will be extended, benefitting corporations and billionaires. They plan on cutting the spending on Medicare and Social Security. Stagnate the federal minimum wage at $7.25 per hour. Repeal the estate tax, and also the Inflation Reduction Act, which had increased taxes on corporations while lowering prices for prescription drugs.
“It is unlikely that any of the policies proposed by Republicans would meaningfully reduce inflation in 2023,” an economist at the conservative American Enterprise Institute, Michael R. Stain, said to the New York Times.
The proposed changes may seem outlandish, which is why the Republicans are trying their best to maintain a low profile about their plans. Unfortunately, economists around the country have warned that their plan could have disastrous impacts on the economy, reported Floricua, a Courier Newsroom publication.
President Joe Biden could block the Republican’s plan; however, this is only a theoretical possibility. It is clear that the GOP will be using the expiration of the debt ceiling to bend the Democrats to their will, making it difficult for the Biden Administration to stop them. The lowering and raising of the debt ceiling is a routine task performed by Congress. The debt ceiling determines how much money the US is allowed to borrow.
If the debt ceiling is not raised, this could cause the US to default on its debt, which may trigger a global financial crisis. While the thought of triggering a global financial crisis would deter any politician, the Republicans have made it clear that they will not be swayed. They have set their minds to introducing cuts to Medicare and social security, even if this means they have to hold the entire world’s economy hostage. This is not an assumption, because, in many interview’s conducted by Jack Fitzpatrick, from Bloomberg, several Republican contenders have clearly stated their intention of starting a debt ceiling standoff.