Bi-Partisan Politics Affecting American Economic Growth
Even as a world power and key player in the United Nations Security Council, the United States also has internal issues it needs to iron out. Analysts are realizing how the inability of the American government to resolve these issues can lead to severe consequences for the average citizen.
Democrats and Republican not Seeing Eye to Eye on Issues
In less than 3 weeks as President of the United States, Joe Biden is not finding the actions of his republican policymakers in the legislative arm funny. In his ambitious bid to deal with the pandemic and the negative effects it has brought on the American people, the president is hoping that a relief bill of over 1 trillion dollars will be approved by the legislative arm.
However, this hope seems to be dying as many republicans in the house are frustrating the validation process. These lawmakers as well as other analysts see the need for the administration to come up with a relief fund to help economic growth. However, the major bone of contention has been how much the federal government should be willing to fund the relief project.
If approved, the bill will go a long way in reducing negative economic situations such as the increase in the unemployment rate. A situation largely caused by the pandemic.
Valid Reasons for the Disapproval
Although the passage of such a bill will positively influence the outcome of things in the nation’s economy, it will no doubt leave some adverse effects.
For instance, there is an increased chance that inflation will rise faster than ever. This will further complicate sectors such as the real estate market that has been difficult to control in this regard. So, without an enforced price control system in place, the nation may be heading for a crisis in terms of inflation.
Furthermore, such a relief package will have severe effects on the nation’s fiscal position. This is even though the United States is a world power in this regard. The nation has spent a lot of resources dealing with the pandemic and is trying so hard to generate revenues the right way.