Debt Ceiling Deal a Disaster for Republicans
The House of Representatives is set to begin voting on the debt ceiling deal later today. If it passes, it will go to the Senate for a vote on Friday. If it does not pass, it will likely catapult the United States into a default with serious ramifications on the global economy.
The House and Biden administration argued for weeks on raising the debt ceiling, a limit set by Congress on how much the government can borrow. The Republican-led House did not want to raise the debt ceiling without budget cuts and policy changes.
Democrats accused the House of using the threat of a default as a “hostage” tactic to twist Biden’s arm. Entering a debt default under Biden’s watch would ruin any chance he has of being reelected in 2024. In the course of negotiations, the Republicans caved.
Blank check: The agreement, which was finally presented on Sunday, doesn’t raise the debt ceiling. Instead, it suspends it entirely until 2025. Rather than increasing the debt limit, the deal abolishes it temporarily.
Essentially, there will be no debt limit in place to control borrowing for over a year and a half. This is a massive win for Democrats.
Some commentators have likened this to writing a blank check. If Congress had simply raised the debt limit by a set figure, the Treasury could borrow up to that set amount. If they didn’t raise it at all, the Treasury could only spend what it is receiving from tax revenues. To suspend the debt limit means restrictions are temporarily lifted and the Treasury can borrow however much it needs to pay the nation’s bills during that set time.
Criticism from the right: A lot of Republicans are speaking out against the deal. Texas Rep. Chip Roy told reporters that “not one Republican” should vote for the agreement today. He said in a talk with radio show host Glenn Beck that if it passes, “we’re going to have to then regroup and figure out the whole leadership arrangement again,” indicating his disapproval of McCarthy.
Congressman Byron Donalds summarized the negative components of the bill, tweeting:
Learn more: There is growing division in America’s government today, and it is headed for a disastrous collapse. The current economic situation is a reflection of a decline in morality, as our article “Debt—the Moral Issue” explains.
Trumpet editor in chief Gerald Flurry writes in America under Attack:
[This] debt … will explode in our faces at any time! This is fiscal, political and intellectual insanity. Some authorities believe America’s debt is our greatest national security problem. But most people act like it is no problem at all. That is extremely dangerous ignorance.
This country has been terribly weakened. To see where this is leading, request a free copy of America under Attack.