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A two -page memo, which has less than a thousand words and filled with right -wing statements, threw the destiny of the US economy into an uncertain area at the end of Monday because the Trump administration in federal grants and debt Hundreds of billions of dollars were suspended. .
The document of the acting director of the Office of Management and Budget clearly states that federal funds should be compatible with the Trump administration’s priorities and should focus on “eliminating vocabulary”. The new deal instructs all social engineering policies and all government agencies to suspend costs while the administration reviews them.
It is difficult to increase the chaos that the guidance, with its ambiguous words, exists within a large -scale organizations within the economy that rely on federal funds. This includes programs that provide essential medical services, emergency assistance for farmers, cancer centers support and even a program. According to my CNN colleague Jennifer Hensaller, Andy Rose and Tami Lohbi, covered the cost of costs for the victims of the deceased, my CNN colleague Jennifer Hensaller, Andy Rose and Tami Lohbi reported.
By Tuesday evening, a federal judge temporarily stopped some of the frozen federal aid.
And when there were still countless questions – a White House spokesperson couldn’t initially say whether medicid funding would be stopped, for example – what was clear is that the federal Any obstacle to the flow of funds will have irreversible Republic effects throughout the United States. Economy.
The desire to overcome spending from Gambut Congress is a part of Trump’s desire describedFor, for, for,. And, according to legal experts, is almost certainly illegal. Samuel Baginsteos, a law professor of law and former OMB at Michigan University, told me that it was a “basic constitutional principle… that the executive branch could delay spending funds allocated for only a few reasons, and None In these reasons, the president does not agree with the policy.
But the move makes it clear how much Trump is willing to play what he wants. Issuing the order, the president is threatening to take a catastrophic ball to one of the most flexible economies in modern history.
Over the past four years, the US economy has denied predictions that it is suffering from recession, the labor market is historically strong, despite two years of inflation and painful high interest rates. And contrary to Trump’s campaign statements, the US economy is in a historically good place-most of the work is done in Fortez, interest rates are decreasing and 3 % annual GDP growth in consumer costs I’ve been backwards.
None of this is guaranteed, especially if thousands of workers who rely on federal grants suddenly get their jobs unacceptable and businesses lose confidence in the government that promises their promises.
Hamilton’s director Wendy Adeelberg said, “In the short term,” the economic effects cannot be scattered in terms of overall economy, but the land is scattered with regard to those who are taking advantage of it. “A senior fellow at the Project and Brookings Institution.” If it’s a week’s thing, it’s just another handful of straws on the camel’s back, another reason is that they stay on the edge… but if we are in a week five Come, and this money is still not out of the door, I will do. Scream, hair on fire, not only about the economy, but about the condition of our country.
Trump’s officials tried to eliminate panic by claiming that the OPB memorandum was not claiming “blanket” on all federal programs, just associated with democratic priorities – a message that seems to be just that The matter is further mud. The White House later said that Medicide was Not Subject to the order, yet several state medical agencies have reported that they have lost access to funds, which they rely on the payment of hospitals, doctors and insurance.
“It was good for them to find out what their policy was before their policy was announced,” said Brandon Duke, senior director of the Economic Policy at the Center for American Progress. “This is primarily a closure of a unilateral partial federal government by the president.”
When the Congress fails to reach the budget agreement, most of us are probably worse than the federal shutdown and it forces all unnecessary staff to stop working and public services like the National Parks. It is done unless the lawmakers can get the bill together. . Because the Trump federal grant affects the freezing costs that the Congress has already approved.
“This is not part of a government shutdown playbook,” said Adeleberg. “We have no playbook for it when the children’s health insurance program is not funding. We are in a different ball game that is much more than thinking about the anger and foolishness of the government shutdown just because of the allotted bills.
Practically it is impossible to correct the amount of potential effects of grant freezing without knowing which programs will be affected and how long. But its effects will hardly be limited to federal aid recipients or those whose jobs are directly funded by them. The reason for this is that economies are not made of discrete blocks that can be easily transmitted or used according to a political agenda – they are dirty, complex webs whose real people with real bills to pay Contains.
“It is foolish to understand how the economy is being fought against the economy, regardless of what policies are being fought,” said Jack Mabel, director of the Georgetown University Center on Education and Work Force. “I think we are really checking out how stress our economy and our labor market are resistant to … but I think this is a really dangerous effort because the results are very important. Playing is a small thing.
