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The Biden Administration has been pushing to save key Covid programs in the midst of the debt ceiling talks, and the question on everyone’s mind is, what are these programs and why are they so important?
Firstly, the debt ceiling is a limit on how much debt the United States government can incur. Once this limit is reached, Congress must act to raise the debt ceiling, or the government risks defaulting on its loans. The current debt ceiling limit is set at $28.5 trillion and is projected to be reached by October.
The Biden Administration is pushing for the continuation of Covid programs, namely the unemployment benefits, eviction moratorium, and small business aid. These programs were put in place during the pandemic to help those who were affected most by the economic downturn.
The unemployment benefits program provided additional assistance to those who were out of work due to the pandemic. The eviction moratorium prevented landlords from evicting tenants who were unable to pay their rent due to the economic downturn. Lastly, the small business aid program provided loans and grants to small businesses that were struggling to stay afloat during the pandemic.
The continuation of these programs is essential in maintaining the economic recovery that the United States has been experiencing. With the threat of the Delta variant and the slow vaccination rate, it is crucial that these programs are continued to help those who are still struggling.
However, the debt ceiling talks pose a threat to these programs as they require additional government spending. Republicans are pushing to offset the spending by cutting funds from other areas such as welfare and education. This has caused a rift between the two parties, with both sides being unwilling to budge on their stances.
This brings us to the question of what will happen if these programs are not continued? The answer is simple, there will be an economic downturn. Millions of people will be affected, and the current economic recovery will come to a screeching halt.
The unemployment benefits program has been instrumental in providing assistance to those who were out of work due to the pandemic. Without this program, millions of people will struggle to make ends meet, and poverty rates will skyrocket.
The eviction moratorium has prevented many families from being homeless during the pandemic. Without this program, millions of families will be kicked out of their homes, and homelessness rates will increase.
Lastly, the small business aid program has helped numerous businesses stay afloat during the pandemic. Without this program, businesses will be forced to shut down, and the job market will be severely impacted.
In addition, failure to raise the debt ceiling will lead to unintended consequences. The United States’ credibility as a borrower will be questioned, and the interest rates on loans will increase. This will lead to higher borrowing costs for the government, which will force cuts to essential programs that millions of Americans rely on.
In conclusion, the Biden Administration’s push to save key Covid programs in the debt ceiling talks is essential to the well-being of millions of Americans. These programs have been instrumental in providing assistance to those who were affected most by the pandemic. Failure to continue these programs will lead to an economic downturn and increased poverty rates. It is crucial that the United States government acts swiftly in raising the debt ceiling and continuing these programs for the well-being of all Americans.