Senate poised to approve new debt ceiling deal - What does it mean for the economy

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As the Senate prepares to vote on a new debt ceiling deal, there are valid concerns on both sides of the political aisle about the potential impact on the economy.

To begin with, raising the debt ceiling is necessary to prevent a government shutdown and, even worse, an economic crisis. Without raising the debt ceiling, the government would be unable to pay its bills, including salaries for federal employees and benefits for retirees and veterans. This could undermine confidence in the US economy and have ripple effects throughout the global financial markets.

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Nevertheless, many experts warn that the continued increase in national debt is unsustainable and could lead to long-term consequences for future generations. As of September 2021, the national debt stands at over $28 trillion, a figure that has grown significantly in recent years due to government spending, particularly during the pandemic.

The proposed debt ceiling deal would suspend the ceiling until December 2022, at which point it would need to be revisited. While this provides a temporary fix, it also highlights the need for a broader conversation about government spending and fiscal responsibility.

Ultimately, the decision to raise the debt ceiling is a complicated one that requires balancing short-term and long-term economic considerations. As lawmakers debate the proposed deal, they must carefully weigh the potential risks and benefits, keeping in mind the impact on the American people and the global economy.

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Matthew Thomas: I'm a political correspondent dedicated to holding power accountable and informing the public about the issues that shape our society. From local elections to global affairs, I provide in-depth analysis and unbiased reporting.