Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Afghan source to Al Mayadeen: We still believe in dialogue and prioritize diplomatic solutions with Pakistan; though we are ready for all possibilities.
Afghan source to Al Mayadeen: Pakistan purposely obstructed negotiations in Turkey by making unrealistic demands.
Al Mayadeen's correspondent: More than 70 martyrs in Israeli attacks on Gaza since dawn.
Death toll from latest Israeli strikes on Gaza rises to 30
Al Mayadeen's correspondent: Five killed in the Israeli bombing of a civilian vehicle on Al-Qassam Street in Khan Younis, south of the Gaza Strip
Hamas confirms that it has no connection to the shooting incident in Rafah and affirms its commitment to the ceasefire agreement
Al Mayadeen's correspondent: Two civilians were killed and four others, including a child and an infant, were injured in an Israeli bombing of a house belonging to the Al-Banna family in the al-Sabra neighborhood, south of Gaza City
Al Mayadeen's correspondent: An Israeli airstrike targets the vicinity of Al-Shifa Medical Complex, west of Gaza City
Al-Qassam: We will postpone the handover of the body of the Israeli captive we found, which was scheduled for today, due to the occupation's violations
Al Mayadeen's correspondent in Gaza: Israeli occupation aircraft launch airstrikes on the city of Rafah in the southern Gaza Strip

US funding to Ukraine may hinder its economy: Experts

  • By Al Mayadeen English
  • Source: Agencies
  • 21 May 2022 10:47
4 Min Read

According to experts, Washington's ambitions to give a $40 billion aid package to Ukraine might have consequences for the US economy, including increased inflationary pressure.

  • x
  • Experts say US funding to Ukraine may hinder its economy
    US President Joe Biden signs the Ukraine Democracy Defense Lend-Lease Act of 2022.

Experts told Sputnik that Washington's ambitions to give a $40 billion aid package to Ukraine might have consequences for the US economy, including increased inflationary pressure.

The US Congress approved an additional $40 billion package of aid for Ukraine on Thursday.

Yesterday, Republican Senator Rand Paul, on Wednesday, said that Congress needs to borrow money from China to send aid to Ukraine, just a day before the US Senate voted by majority to send $40 billion in military and economic aid to Ukraine and its allies. According to Investopedia, the US owes China $1 trillion in debt. 

Rand Paul and Josh Hawley both opposed the vote, and the aid tops up the $4.5 billion in aid supplied to Ukraine since the start of the war.

According to Robert Singh, a professor of politics at Birkbeck, University of London, Beijing has been buying US Treasury bonds for decades. He stated that "technically, Paul is correct - the US needs to finance its deficit and debt, and so unless the government either increases taxes or cuts social spending, it has to borrow."

Gloria Shkurti Ozdemir, a foreign policy expert at Turkey's SETA Foundation, highlighted parallels with Paul's 2020 comment on the COVID-19 stimulus programs. She pointed out that such assertions were disregarded as false at the time, and it was claimed that the Federal Reserve would fund the majority of the costs.

Shkurti stated that Paul's statements are at some point correct in the sense that this aid is very large, and it will have a great impact on the American economy, especially when the inflation has reached very high levels and the US economy is struggling.

Related News

Trump-backed Milei wins big in Argentina amid US bailout deal

South Korea’s Lee urges Trump to revise nuclear pact

Marshall Auerback, a market analyst and research associate at the Levy Economics Institute of Bard College, believes that what the US is facing is resource constraint and not financial restraint.

Auerback notes that "the US continuing to prosecute a proxy war vs Russia is likely to exacerbate those inflationary pressures, especially in the food and energy complex, where both Ukraine and Russia are significant marginal producers."

Paul told Breitbart that his colleagues oppose social expenditure but support it when it is tied to the military. He then mentioned a bipartisan agreement, with Democrats supporting more social assistance and Republicans supporting increased military spending.

According to Paul Gottfried, a political theorist and former Horace Raffensperger Professor of Humanities at Elizabethtown College, Republicans nag about government expenditure but then do the exact opposite of what they accuse Democrats of doing.

"The Republican Party is heavily subsidized by defense industries and has never seen a bill that favors its sponsors that it can turn down," he said.

Singh, for one, claims that despite some Republicans claiming to oppose government programs, the majority of them vote to keep them because such initiatives are popular and opposing them carries political risks, despite the fact that social programs drive the deficit and debt much more than defense spending.

"At the same time, I think the bulk of Republicans, like Democrats, see the aid to Ukraine as a special case,"  he said.

Last February, the US Treasury announced that its national debt had hit a record high of over $30 trillion, in addition to the inflation which has skyrocketed reaching the US' biggest jump in 40 years.

The United States first started supplying Ukraine with weapons labeled as "defensive", but later on, it started sending artillery, helicopters, and UAVs to the Ukrainian army. Not only that, but Washington trained Kiev's troops on using the equipment in third countries.

  • United States
  • US aid
  • Russia
  • US President Joe Biden
  • Ukraine
Russia & NATO

Russia & NATO

As the Draconian Western-led sanctions on Russia exacerbate the economic crisis worldwide, and as Russian troops gain more ground despite the influx of military aid into Ukraine, exposing US direct involvement in bio-labs spread across Eastern Europe and the insurgence of neo-Nazi groups… How will things unfold?

Most Read

'Israel’s Digital Iron Dome: Weaponizing the web against Palestine

'Israel’s Digital Iron Dome: Weaponizing the web against Palestine

  • Technology
  • 24 Oct 2025
Arab League chief exposes secret US deal shielding 'Israel’s' nukes

Arab League chief exposes secret US deal shielding 'Israel’s' nukes

  • Politics
  • 27 Oct 2025
Abu Hamza, the spokesperson for the Al-Quds Brigades, during a speech televised on October 22, 2025 (Al-Quds Brigades Military Media)

Al-Quds Brigades' Abu Hamza mourns leaders, vows continued resistance

  • Politics
  • 22 Oct 2025
US missionary kidnapped in Niger capital, suspected taken toward Mali

US missionary kidnapped in Niger capital, suspected taken toward Mali

  • Africa
  • 23 Oct 2025

Coverage

All
War on Gaza

Read Next

All
Saudi's PIF refocuses on AI, logistics, and religious tourism
Economy

Saudi Arabia's fund refocuses on AI, logistics, and religious tourism

Detained Bahraini activist al-Khawaja starts new hunger strike.
Politics

Detained Bahraini activist al-Khawaja starts new hunger strike

Israel fortifies Gaza’s "yellow line," prepares to dig in.
Politics

'Israel' fortifies Gaza’s 'yellow line,' prepares to dig in: WSJ

President Donald Trump speaks to reporters aboard Air Force One as he travels from Tokyo, Japan, to South Korea, on October 29, 2025. (AP Photo/Mark Schiefelbein)
Asia

Trump’s weak dollar strategy risks global fallout: Forbes

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS