Economic Crisis Avoided
June 2, 2023
by Maria Salinas
The nation’s debt ceiling showdown concluded in Washington, D.C. with a compromise. Avoiding an economic crisis is important not only here in the U.S., but in international markets as well. The debt ceiling is the legal limit of borrowings to meet financial obligations. Without a deal, the government could shut down or face its first-ever default on financial obligations.
Our economy and residents rely on funding from the federal government for a wide variety of needs, payments to federal employees, contractors, the military and a host of social programs that help vulnerable communities . I reflect on the thousands of small businesses that are being helped by the U.S. Small Business Administration either through grants, loans, or technical assistance support. Those business owners and entrepreneurs rely on the stability of the federal government.
The compromise between Speaker McCarthy and President Biden sets us on the right path to move forward.
With this compromise, the Fiscal Responsibility Act will go to President Biden’s desk to be signed into law. To stay up to date on other policy news, follow the Chamber’s Policy Update here.
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