If Republicans take control of the House this fall, they plan on using debt limit talks — and the possibility of throwing the U.S. into default — if they don’t get their way on slashing government programs.
A new interview with Kevin McCarthy (R.California), reveals that McCarthy is the House Minority Leader. the party is planning on using must-pass debt ceiling legislation to force through the GOP’s agenda.
“You can’t just continue down the path to keep spending and adding to the debt,” McCarthy said in an interview with Punchbowl NewsThis ignores the fact that economists see national debt obligationsAs a sign of economic health, it is often used. “We’re not just going to keep lifting your credit card limit, right,” he continued. “And we should seriously sit together and [figure out]Where can we get rid off waste? Where can we make the economy grow stronger?”
McCarthy is most likely referring to the elimination of so-called waste when he speaks of it. the GOP’s plansTo reduce Medicare and Social Security, two of the most important programs in the country. most popularVital anti-povertyThe U.S. government programs
The programs have been attacked by Republicans over the past months. Sen. Ron Johnson (R-Wisconsin) has threatenedTo put budgets up for congressional debate each year, which would almost certainly lead to cuts. Alarmingly this year, the Republican Study Committee (largest Republican caucus) put forward a budget. out a planTo raise the age at which people can receive full benefits from both programs, to 70, and to implement a rule that would increase the eligibility age over time.
Republicans can use the debt ceiling as a bludgeon to achieve this goal. The debt ceiling accounts for government funding to provide promised payments for programs like Medicare and Social Security, as well as military salaries and other “existing legal obligations,” according to the Treasury Department.
Republicans threatened to declare the United States bankrupt last September. Former President Donald TrumpThey urged the party to do this. They appeared to be posing as deficit hawks — something They only do. when a Democrat is in charge — while Democrats were debating the Build Back Better Act.
If they pull a similar move in 2023, it could be similar to 2011, when the GOP manufactured a debt ceiling crisis that ultimately “led directly to the worst recovery following a recession since World War II,” according to the Economic Policy Institute.
If the debt ceiling is exceeded isn’t raisedThe U.S. could find its funding shortfall in fall 2023. This is similar to last year’s situation, when it was at high risk of defaulting. This Could have triggered global recessionThis would have catastrophic short-term and long-term consequences on the U.S. and ruin the creditworthiness.
In other words, Republicans seem to be willing to holdTo force Democrats to yield to their demands, the U.S. economy and global economy are at the edge of disaster.
Republicans can also blame Democrats for any economic downturn that comes with a default, government shut down, or cuts to Medicare or Social Security. By pursuing these cuts during a Democratic presidency, they can point fingers at President Joe Biden if they are pushed through — potentially providing the GOP with a weapon come the 2024 election.
Republicans are making other plans in case they win the House. polls sayThey are likely to do so. The House Education and Labor Committee is dominated by GOP members A list of notable labor officials has been createdLike Marty Walsh, Labor Secretary and National Labor Relations Board General counsel Jennifer Abruzzo Biden’s pro-workerTask force to be targeted by hearings and attacks in case they take control of the House