U.S. might run out of cash by June 1st

At the start of the new month, Janet L. Yellen, Treasury Secretary, said the U.S. might run out of cash by June 1st. I don’t think many people anticipated this, and are questioning, can this happen? Running of cash means the U.S. might have issues paying their bills which will cause many economic issues for our country. Another question being asked is what can we do to avoid this from happening?

In the New York Times article, Alan Rappeport and Jim Tankersley wrote, Congress is suggesting President Biden raise or suspend the debt limit to avoid this national matter escalating. The increase in government spending has been a cause of this issue and President Biden, the House, and the Senate are trying to agree to a deal to avoid this issue from actually happening. President Biden is having a meeting on May 9th with Speaker Kevin Mccarthy and other lawmakers to try to resolve this before the United States faces a financial crisis. In the political aspect, both the Republicans and Democrats have come up with different ideas and proposals that can try to get this resolved, but the Republicans don’t agree with the Democrats’ proposal and vice versa. New York Times Article

All the pressure is on President Biden because will be the one deciding what the United States will do to avoid running out of cash. The United States has never failed to pay off its debts or interests, so this matter occurring is making many people worry about what can happen. Biden is currently opposing the idea of raising the debt limit because he believes it will hurt many working families and be challenging for them to be able to pay off their debts. All in all, it is important to think about the economic aspect as a whole and really see what will benefit the country and its citizens without going into a financial crisis. Forbes Article

This blog post is part of the CIMA Law Group blog. If you are located in Arizona and are seeking legal services, CIMA Law Group specializes in Immigration Law, Criminal Defense, Personal Injury, and Government Relations.