House Speaker Kevin McCarthy prepares to meet with President Biden today, and concerns are rising about the poor economic recovery of the United States. While the United States remains tremendously in debt, throughout his Presidency, Biden has frequently attempted to dodge the blame for the economy’s poor recovery.
In the likely to be highly contentious meeting, both McCarthy as well as Biden will attempt to stick to their guns, with the possibility of a no debt-ceiling deal occurring. If there is no debt ceiling deal, there has been no agreement reached between the government and Congress on the amount of debt the government can incur. This can result in a government shutdown or potential default on its debt obligations. It is important for the both the Congress under a Republican majority as well as President Biden to reach a debt ceiling deal in order to ensure the stability of its financial position and the confidence of its creditors, as well as avoid a government shut down.
Biden, meanwhile, has commented about the economic policy disagreements between himself and McCarthy, saying:
“Show me your budget, I’ll show you mine.”
As reported by MSN, “The White House released a memo saying Biden will have two questions for McCarthy. First, Biden will seek a commitment from McCarthy that he will ensure the country will pay its already-incurred debt, National Economic Council Director Brian Deese and Office of Management and Budget Director Shalanda Young said in the memo,” MSN continues to report. “Secondly, Biden wants to know when Republicans will release their budget, which would show what programs the new House majority would cut to reduce the deficit and the debt.” Adding, “The United States must never default on its financial obligations. Raising the debt ceiling is not a negotiation; it is an obligation of this country and its leaders to avoid economic chaos,” Deese and Young wrote in the memo previewing the meeting.”
McCarthy sent his response to President Biden and the White House, saying:
“Mr. President: I received your staff’s memo. I’m not interested in political games,” the speaker tweeted. “I’m coming to negotiate for the American people.”
McCarthy told reporters at the Capitol last week, “Here’s the leader of the free world pounding on the table, being irresponsible, saying ‘no, no, no, just raise the limit, make us spend more.’ No. That’s not how adults act,” adding, “Let’s find common ground, and let’s eliminate the wasteful spending to protect the hard-working taxpayers… So the longer he waits the more he puts the fiscal jeopardy of America up for grabs.”
Currently, the United States is over $31 trillion in debt, and we’ve had a lackluster economic repair since shutting down the country due to the COVID-19 pandemic. While McCarthy doesn’t want to play “political games” about the debt-ceiling, if the White House’s demands are too astronomical, then there may be no choice for McCarthy and House Republicans.