America is quickly running out of this
The United States government may default on its debt obligations as soon as next Thursday, June 1, unless Congress agrees to legislation raising the debt ceiling, at least temporarily, before then. Today, however, U.S. House Speaker Kevin McCarthy is sending House lawmakers home early for a long Memorial Day recess, seemingly uncaring about the debt ceiling crisis. That comes after Republicans, “led” (and we use the term loosely) by Speaker McCarthy, took America hostage by demanding that, in return for even talking about raising the debt ceiling so that we can pay for past spending, the government make huge cuts in veterans’ benefits, environmental protection, student loan forgiveness and other crucial areas in future spending. If a default happens, therefore, it is squarely the fault of Congressional Republicans.
The future spending that Republicans are trying to cut with a chainsaw is known as the budget, and is something that gets debated every year in a separate process. However, Republicans have tried to conflate the debt ceiling with the budget, and are now walking away from paying America’s bills, both literally by walking out of talks last week and now leaving Washington, and figuratively by making such extreme demands that cannot possibly be met. It appears at this point that Republicans want to blow up America’s (and possibly the world’s) economy, our stock market, our job market, our ability to pay Social Security and interest on Treasury bonds, and more. If so, the Republicans’ goal seems to be to create chaos and blame President Joe Biden, in a desperate attempt that they hope might lead to their reelection (see the book The Shock Doctrine for a discussion of this strategy).
Imagine trying to do this in your own life. Try telling American Express or MasterCard that you refuse to pay your credit card bills for past spending until you and your family can come up with a solution for controlling your household’s future spending. Try telling that to your mortgage company, or your utility company, or your phone or cable TV company.
Nevertheless, President Biden has bent over backwards to meet with Republicans and hold negotiations over the debt ceiling, discussing their extreme proposals, even though America’s debt is a solemn obligation over which he should not have to bargain. President Biden has made offers (to the consternation of many Democrats) to bridge the gap with Republicans, including tightening work requirements for individuals receiving federal aid. Thus far, however, the Republicans have shown no real movement in these talks, and indeed, some Republicans appear to be urging McCarthy not to compromise with the Democrats at all.
Make no mistake, therefore: any default by the United States at this time will be a Republican Default, and they must be made to own the political consequences.
Photo by Ervins Strauhmanis, used under Creative Commons license. https://is.gd/rjPYTl
