Finance

Biden, McCarthy Deadlocked in Debt-Ceiling Meeting

MAY 9 2023·Updated MAY 11 2023

Story

Image credit: AFP/Getty Images [via Business Insider]

The Facts

Congressional leaders, including House Speaker Kevin McCarthy (R-Calif.), met with Pres. Joe Biden on Tuesday to try to resolve disagreements over raising the debt ceiling, but to no avail. Another meeting is expected to take place on Friday.
Business Insider
The discussion on this issue — their first face-to-face talk on the topic since February — was arranged last week, after Treasury Secretary Janet Yellen warned lawmakers that the US could default as early as June 1 if the debt ceiling is not increased.
New York Post
This standoff comes as Republicans have requested deep spending cuts to lift the federal borrowing limit, while the Biden admin. has sought to increase the debt ceiling without preconditions. Neither side, however, has enough support to pass a bill in both chambers of Congress.
wsj
If no agreement is reached, Biden could reportedly use the 14th Amendment to bypass Congress and keep borrowing money past the current $31.4T debt limit without Republican approval. Yellen, however, stated on Sunday that this unprecedented move would not solve the problem.
Time
The federal government hit the debt ceiling in January, prompting the Treasury to deploy accounting maneuvers — known as "extraordinary measures” — to free up cash and continue payments.
Forbes
The US has narrowly avoided a default on federal obligations seven times in the past decade, including in 2011, when the deadlock was broken hours before the Treasury's deadline for Congress to act on the debt limit was exceeded.
Bipartisan Policy Center

Sources Split

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The Spin

Democratic narrative

Republicans are playing with fire by choosing to reject a clean debt ceiling raise. The US default would be a disaster both financially and politically around the world, creating the opportunity for China and Russia to exponentially grow their influence. These cheap GOP attempts to bypass spending negotiations by holding the debt ceiling hostage are putting the entire world in danger.

CNN

Republican narrative

Biden’s opinion ratings are dismal, particularly because of his handling of the economy. The left is continuing to attempt to pressure Republicans into accepting another unconditional rise in debt through scaremongering of a doomsday scenario if the ceiling isn’t raised while refusing to come to a compromise themselves. Biden must give up his pride and open himself to negotiations with the GOP for the sake of the country.

FOX News

Cynical narrative

While Republicans and Democrats continue to claim that they "understand the danger" that the US will face if no agreement is reached, both sides are still gambling with a default-catalyzed economic crisis, maintaining a historical trend of disasters occurring due to partisan games that disregard the lives of millions. Both sides must remember the lost art of bipartisanship and come to an agreement together before it's too late.