The escalating economic crisis in America casts a heavy shadow over the potential paths to the presidential elections to be held in 2024, while experts expect it to negatively affect the fortunes of the current president, Joe Biden.
The Republicans are currently seeking to use the economic crisis the United States is going through as a political pressure card in the upcoming presidential elections, by saying that Biden’s policies have caused the US economy to stagnate, which negatively affects his chances in the elections, according to observers who spoke to the website. Sky News Arabia.
According to the American writer specializing in political affairs, Byron York, the accusations by the Republicans of President Biden, of poor monetary policies and increased spending, may represent a pressure card in the upcoming presidential elections.
York indicated that the United States witnessed high rates of negative growth, in the first and second quarters of 2022, but the economy returned to the positive growth zone in the next quarter, of the same year, and then to stagnation again.
Government reports indicate that the gross domestic product grew at a weak annual rate of 1.1 percent in the first quarter of 2023.
Growth in the US slowed dramatically during the first three months of the year as interest rates increased and inflation gripped an economy that is largely expected to slow.
It is expected that the economic crisis will have negative effects on the upcoming elections, according to York, if the current efforts do not succeed in resolving the crisis.
York explained the impact of the economy on Biden’s situation by saying: “The greatest political burden falls on Biden. Just as Republicans accuse, the president bears some personal responsibility for the slowdown in the economy, after he pushed policies, especially government spending, to make a recession more likely.”
“Biden could campaign for re-election during the recession he helped cause, but it would be a great adventure,” York added.
Can Biden solve the crisis before the elections?
American writer Paul Krugman predicted more negative scenarios for the US economy in the coming months that would directly affect the election scenarios in 2024, most notably:
- Biden and his party’s inability to provide urgent solutions to the existing economic crisis in the United States.
- Next summer may witness major complications regarding the economic situation, which would negatively affect Biden’s electoral fortunes.
- Rapid and high inflation affected the labor market as well as the prices of goods and services, which represents a weakness for Biden.
- The Corona pandemic directly affected the US economy, which led to doubling the crisis.
- Biden must provide urgent solutions and quick measures to contain inflation and unemployment, as well as achieve economic recovery in the coming months to overcome the crisis.
The latest developments in the debt crisis
In the latest developments in the debt crisis, the White House warned, Thursday, that the failure of the United States of America to pay its debts will harm local and global financial markets, and will negatively affect companies and workers in the country.
The White House urged the US House of Representatives to cooperate to reach an agreement to raise the debt ceiling that spares the United States the repercussions of defaulting on its debt.
Republicans are pressing President Biden, a Democrat, to agree to spending cuts as a condition for raising the self-imposed US debt ceiling at $31.4 trillion.
On Wednesday evening, President Biden’s economic advisers said that if the world’s largest economic power fails to meet its financial obligations on time, and this default is prolonged, the American labor market may lose more than 8 million jobs this summer.
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2023-05-05 22:16:46
