(TheProudRepublic.com) – The reality of America’s financial crisis is higher than in other years as U.S. Corporate America is crumbling under Biden’s disastrous economic policies, with a shocking surge in bankruptcies that has hit a 14-year high.
In 2024, a staggering 694 companies filed for bankruptcy, marking the highest level since 2010.
This unprecedented wave of financial failures serves as a damning indictment of the current administration’s incompetence in managing the nation’s economic affairs.
Skyrocketing interest rates, runaway inflation, and plummeting consumer spending power are the root causes of this catastrophe.
Exacerbated by the Biden administration’s reckless policies, these factors have created a perfect storm ravaging businesses nationwide.
The consumer discretionary and industrial sectors have been hit particularly hard, accounting for a whopping 28% of all bankruptcy filings.
This directly results from the administration’s failure to protect American businesses and workers.
According to Financial Times, “The surge in bankruptcies is a stark contrast to 2021 and 2022, when only 777 bankruptcy filings occurred combined, largely due to the Fed’s rate-cutting programme.”
This stark contrast highlights the devastating impact of Biden’s policies on the once-thriving economy.
The Federal Reserve’s misguided approach to interest rates has left businesses struggling to access credit and manage their debt, pushing many over the edge into bankruptcy.
Even more alarming is the rise of “zombie companies” – nearly 10% of publicly traded companies in the world’s 20 largest economies are unable to cover interest payments on their debt.
The Federal Reserve plans modest rate cuts in 2025, yet experts assert that bankruptcy threats will not significantly shake the economic landscape for now.
In 2024, the total debt among credit-rated nonfinancial U.S. companies set a quarterly record of $8.453 trillion, underscoring the gravity of the situation.
The challenges of 2024 highlight a critical need for conservative economic policies that support sustainable growth and fiscal responsibility.
An overreliance on debt and a lack of consumer confidence can cripple businesses, emphasizing the importance of strong leadership and judicious fiscal management.
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