Alright folks, let’s get serious for a second. The House Republicans have made it clear that they won’t pass a clean debt-ceiling increase without adding some conditions. Who knew they were such thrill-seekers? But all jokes aside, this could lead to default, which would be as chaotic for the economy as trying to navigate an Ikea store without a map.
Let’s be real here, playing games with the full faith and credit of the U.S. government is always a bad idea. It’s like playing Russian roulette with a loaded gun. Haven’t these lawmakers learned anything from the 2011 standoff that caused the U.S. credit rating to plummet and borrowing costs to rise? Apparently not.
We do agree with Mr. McCarthy that we need to have a serious conversation about spending and debt. But he forgot the crucial third component – revenue. We, the Editorial Board, have been publishing a series of editorials on how to stabilize debt over the next decade, and it requires about $8 trillion in new savings or revenue. We understand how hard it is to come up with concrete proposals, because we’re trying to do it too. Mr. McCarthy’s words weren’t backed up by an actual plan. At least bring some snacks to the table, man.
It’s not clear what House Republicans want to cut either. Mr. McCarthy mentioned on Wall Street that they want to cap “discretionary spending” at 2022 levels. So, that means they want to limit both military and non-military spending? Wow, that’s different from many in his caucus who proposed slashing only non-military spending. They might as well say they want to cut everything except the snacks in the break room. Those numbers don’t add up, and Democrats aren’t going to agree to only cutting social programs. It’s like trying to negotiate with a toddler who doesn’t want to share their toys. It’s a nonstarter.
To tackle the fiscal issues of the nation, Congress and the White House need to include common-sense Social Security and Medicare reforms. Both Mr. Biden and Mr. McCarthy agree on keeping them off-limits, which undermines any efforts to solve the nation’s fiscal situation. But it’s ok, let’s just keep kicking the can down the road like a bunch of kids playing soccer.
Even if all discretionary spending were capped, it would only save about $3 trillion, according to the Committee for a Responsible Federal Budget. That’s not nearly enough to stabilize the debt. It’s like trying to pay off your credit card debt by cutting your daily cup of coffee. Sure, it helps, but it’s not going to solve the problem.
Mr. McCarthy needs to get serious and actually engage in some conversations with Mr. Biden about the debt limit. This lack of serious engagement needs to change or else default could come as early as June. It’s like waiting until the night before a deadline to start working on a project. It never ends well.
Instead of pretending to be magicians and papering over their differences with modest budget cuts, House Republicans should just lift the debt ceiling now and launch negotiations on a sustainable budget solution for the next few years. Does Mr. McCarthy want to be remembered for playing political games or actually making a lasting change? We’re hoping for the latter because being the first to trigger a U.S. default isn’t exactly a badge of honor.
Serious News: washingtonpost
