The article “Week in Business: The Debt Limit and Politics” by Lora Kelley is a report in an informative style and designed to capture readers’ attention to economic issues. The author uses official announcements, statistics, and modern tendencies as evidence to support the main ideas. The author points out different financial problems in the US and its companies due to increased prices and emphasizes the probability of financial crisis occurrence. The news article pays attention to the massive employee shortages in the companies such as Microsoft, Google, and Alphabet. The article researches the main economic problems that might lead to the financial crisis by using statistics of sales falls and massive shortages and income loss among famous companies.
The government’s ability to pay its bill was analyzed, and the author revealed financial problems that might lead to a financial crisis. The author stated that the US might face a financial crisis if the borrowing cap limit is not raised (Kelley). This statement seems trustworthy, as the article uses official as its primary sources and provides statistics. For example, Democrats and White House economists warned that a financial crisis is possible (Kelley). In addition, the news article provides official financial information about US expenses. According to it, the US government hit a $31.4 trillion borrowing cap, almost within the Americans’ limit (Kelley). Hence the article shows that the US’s ability to pay its bills is under threat if the borrowing cap limit is not raised, which might cause a financial crisis.
Many famous companies face financial difficulties due to the pandemic and increased prices, which results in massive employee shortages and financial loss. The author used statements from two of the tech industry’s most prominent players: Microsoft and Google, about the intention to cut millions of jobs. According to these announcements, Microsoft will lay off 10000 workers, and Google, especially its parent company Alphabet, – has cut off 12000 workers (Kelley). These problems are explained by the economic changes due to Coronavirus and are influenced by high pricing. However, another famous company Apple remains in the same position, and no massive changes are seen (Kelley). This situation shows that fundamental changes are needed to increase companies effectiveness. Therefore, the financial problems in the US are proven by massive shortages and income loss among famous companies such as Microsoft and Google.
Many companies faced sales drops, because of increased prices on their products, due to global price growth worldwide. To support this statement, the author used annual sales statistics of different companies. For example, the annual sales of Procter & Gamble dropped for the first time in five years, which illustrates the financial problems that occurred in the company (Kelley). Another company, which is famous because of Tide detergent, and Head & Shoulders shampoo, reported a 1% annual’s sales drop (Kelley). The author explains that such a drop is connected with high expenses. The author used rhetorical questions to capture readers’ attention, emphasizing the main article’s arguments, such as “Slower spending?”, “whats next?”. Also, the linguistic mode is used to provide information and media – to spread it. Thus, the article illustrates the financial problems of famous companies due to a rise in prices, leading to a sales drop.
To conclude, the article reveals the main financial problems in the US that might cause the financial crisis. Firstly, a financial crisis will occur if the government does not raise limits. Secondly, Microsoft and Google face global financial problems, resulting in massive shortages. Thirdly, the annual sales drop due to increased prices illustrates that people also suffer financial difficulties. Lastly, the author’s aim is to show the main arguments for the possible occurrence of the financial crisis, so rhetorical questions, statistics, and announcements from officials are used to support the ideas.
Works Cited
Kelley, Lora. “The Week in Business: The Debt Limit and Politics”. The New York Times. Web.