Title: President Joe Biden Warns of Potential Government Shutdown and Economic Fallout
Date: September 14, 2023
Washington, D.C. – U.S. President Joe Biden is set to address the nation today, warning about the damaging effects of federal budget cuts and the possibility of a government shutdown. Biden will stress the adverse impact on the American economy and its citizens as the clock ticks towards the looming September 30 funding deadline.
With just 12 days left before the US government’s funding expires, tensions are rising between the Republican-controlled House and the Democratic-controlled Senate. House Republicans are demanding a reduction in spending for fiscal year 2024 to $1.47 trillion, which is approximately $120 billion less than what was agreed upon in May by Biden and Republican House Speaker Kevin McCarthy regarding the debt ceiling. However, Senate leaders, including top Republican Mitch McConnell, and the White House have rejected this demand.
In a statement released by the White House, it was stated, “Today, the President will explain how these harmful cuts fit into the larger Republican budget plan…and what that plan would mean for the American people.”
Over the course of this fall, the White House will heavily criticize the Republican budget plan, referring to it as “MAGAnomics.” The term, coined by former President Donald Trump’s budget director Mick Mulvaney, describes Trump’s strategy of corporate tax cuts, welfare cuts, and reducing regulations in his “Make America Great Again” initiative.
President Biden aims to counter the Republican agenda by arguing that their plan involves lowering taxes for the wealthy and cutting programs such as Social Security and Medicare. Republicans also push to make Trump’s tax cuts permanent, and some candidates running in the 2024 election have proposed changes to the popular Social Security plan.
In contrast, Biden and Democrats have introduced “Bidenomics,” a plan focused on investing in infrastructure, green energy, local manufacturing, and encouraging companies to share profits with workers. They have successfully pushed for over $1.4 trillion in federal funds through Congress.
However, despite the positive economic indicators, Biden has struggled to convince most Americans of the strength of his economic stewardship. According to polling conducted by the Democratic organization Navigator Research in August, only 25% of Americans supported Biden’s major actions, such as the Inflation Reduction Act, while still expressing dissatisfaction with his handling of the economy.
To address these concerns and win over skeptics, Biden delivered a speech in June, reintroducing his vision of middle-class American prosperity in Chicago.
It remains to be seen how the budget negotiations will unfold and whether a government shutdown can be avoided. As the deadlines approach, the nation watches with anticipation to see how President Biden’s economic plans will fare and how they will affect the overall well-being of the American people.
Reporting by Nandita Bose in Washington; Editing by Christian Schmollinger, Heather Timmons, and Alistair Bell.
*This news article adheres to the Thomson Reuters Trust Principles.