Two months after Republicans permitted a vote to raise the debt ceiling to pay for spending through mid-December’s, the party is using obstructionist tactics once more to gain paltry political points. This could jeopardize the health of the entire U.S. economic system.
Republicans are going to greater lengths to threaten a default on the debt this time. subsequent recessionThe plan proposes to pass the debt ceiling increase, contrary to a plan that was developed through negotiations with Senate Minority Leader Mitch McConnell (R.Kentucky). The plan proposes that the debt ceiling be raised. through Congress’s defense appropriations billCreate or edit a new processThis would allow the debt ceiling limit to be raised by a simple majority of 51 votes.
Instead, some Republicans are insisting — as they did earlier this year — that Democrats pass the raise through the reconciliation bill, a process that It could take weeks.
On Tuesday, Sen. Lindsey Graham (R-South Carolina) told NBC that there wouldn’t be 10 Republicans who would agree to McConnell and Senate Majority Leader Chuck Schumer’s (D-New York) proposed rule change for a simple majority vote on the debt limit. “I think Democrats should raise the debt limit through reconciliation,” he said.
Kevin McCarthy (D.California House Minority Leader) has rejected the idea that the defense bill should pass the debt limit. “Funding our troops through the NDAA should in no way, shape, or form be tied to the debt limit in process or substance,” he tweetedMonday
Similar stubbornness was displayed by GOP senators. “So if I vote for the NDAA, people are gonna say I voted to raise the debt limit? I’m not for that,” Sen. John Cornyn (R-Texas) said.
Republicans have justified their opposition to raising debt ceiling by claiming that they won’t fund spending by Democrats. But In realityDonald Trump and Republicans have amassed nearly all of the current debts that must be paid. $8 trillion in debt during Trump’s four years in office. This is more than any president has added to the deficit, except for George W. Bush (who was funding costly war efforts)
Democrats have very few options for raising the debt ceiling without the defense legislation or simple majority vote avenues. In effectively rejecting all options other than the one that they favor — one that would likely allow Republicans to smear Democrats ahead of the 2022 midterms — they are backing Democrats into a corner to force their hand on the raise, or else be blamed for the economic crisis that will follow.
Janet Yellen is Treasury Secretary has estimatedThe country will default on its debts next Wednesday, December 15. If the country defaults upon its loans for the first-time in American history, Yellen will be called. Economists have warnedA recession would almost always occur.
The subsequent economic downturn, according to an analysis by Moody’s Analytics, could cost nearly 6 million jobs and would plummet household wealth by $15 trillion. It would also lead to long-term effects on borrowing rates and would have a disastrous effect on the U.S.’s credit rating. Moody’s economists have called this scenario “cataclysmic.”
This isn’t the first time that Republicans have threatened economic disaster over the debt ceiling. In 2011 and 2013Similar efforts were made by the party. Both times resulted in economic turmoil; in 2011, Republicans’ efforts created a set of “hyperaustere” spending limits, The New RepublicIt was pointed out.
However, Democrats have another option to raise the debt ceiling. Eliminating the filibuster would allow Democrats to pass the debt limit and any other legislation they want with a simple majority vote. But, after months of negotiations, it is now over Even the smallest of proposals can be acceptedThe reconciliation bill has shown that conservative Democrats who support keeping the filibuster are unable to budge on this issue, even in the face disaster.