In a few days, the government is set to run out of funding as Democrats and Republicans cannot find common ground on funding the government or raising the debt limit. Republicans argued that they can only vote for funding the government if the debt limit is not raised in addition to that.
Democrats are not interested in funding the government unless they can also raise the debt limit. What does this mean exactly? It means that the government will run out of money on September 30th and a government shutdown will take place.
Democrats have the ability to scramble themselves out of this situation without any Republican votes, but raising the debt limit on a partisan basis is certainly not going to help their political situation as they approach the midterm elections in 2022. With that being said, they may not have a choice.
Republicans have been ignored for much of what the Democrats have wanted to pass in congress since Biden took office in January. Democrats have used the process known as ‘reconciliation’ to avoid a filibuster and pass legislation with 50 votes instead of 60 in the U.S. Senate.
It’s a political game in Washington D.C. that places a lot on the line for the country. The United States has a stock market that appears to be teetering on the edge of collapse and interest rates could climb rapidly if the United States defaults on its debt.
That situation would send a shockwave through the U.S. economy that the Democratic Party is now solely responsible for with both chambers of congress in their majority in addition to holding the White House.
Every decision from this point forward could have significant consequences on the U.S. economy. Any miscalculation from either side could send the stock market and the U.S. economy out of control. Not to mention, many government workers may not receive a paycheck if the government shuts down for an extended period of time.