The Atlanta Journal-Constitution
WASHINGTON Standoff continues over U.S. debt limit
Despite funding feud, both sides says default to be avoided by Oct. 18.
WASHINGTON — President Joe Biden on Monday urged Republican senators to “get out of the way” and let Democrats suspend the nation’s debt limit, hoping to keep the U.S. government from bumping dangerously close to a credit default as Senate Republican Leader Mitch Mcconnell refuses to lend his party’s help.
What happened
Biden’s criticism came with Congress facing an Oct. 18 deadline to allow for more borrowing to keep the government operating after having accrued a total public debt of $28.4 trillion. The House has passed a measure to suspend the debt limit, but Mcconnell is forcing Senate Democrats into a cumbersome process that could drag on and approach the deadline with little margin for error.
Why it matters
Biden and Mcconnell have promised that the country will avoid default, yet the political posturing risks an economic meltdown. The global economy relies on the stability of U.S. Treasury notes, and unpaid debt could crush financial markets and spur a recession. Biden noted that the debt limit applies to borrowing that has already occurred, including under former President Donald Trump, and said Republicans are hurting the country.
“They need to stop playing Russian roulette with the U.S. economy,” Biden said at the White House. “Republicans just have to let us do our job. Just get out of the way. If you don’t want to help save the country, get out of the way so you don’t destroy it.”
Unmoved, Mcconnell said Republicans had given the Democrats a roadmap for dealing with the debt ceiling with months of warning. “I suggest that our Democratic colleagues get moving,” Mcconnell said at the Capitol.
What it means
Once a routine vote, the need to raise the nation’s debt limit has become increasingly partisan. It’s become a favorite political weapon of Republicans to either demand concessions or force Democrats into unpopular votes to enable more borrowing. Mcconnell has tied the vote to Biden’s multitrillion-dollar tax and economic agenda that awaits Congressional approval. But Biden says the price tag in terms of debt for his plan will be “zero,” paid for by raising taxes on corporations and on the wealthy, whom the House Democrats have defined as individuals earning more than $400,000 a year, or couples making more than $450,000.
Biden said he planned to talk with Mcconnell, who dug in with a letter of his own to the president.
“We have no list of demands. For two and a half months, we have simply warned that since your party wishes to govern alone, itmust handle the debt limit alone as well,” the Kentucky senator wrote in the Monday letter.
Treasury Secretary Janet Yellen has projected the government will exhaust its cash reserves on Oct. 18. Senate Majority Leader Chuck Schumer warned on Monday that it would be hazardous for the economy to come anywhere near that deadline.
Democrats and Republicans are in a standoff over how to handle an extension for the debt ceiling. Republicans are insisting that Democrats go it alone with the same legislative tool that is already being used to try and pass Biden’s plan to boost safety net, health and environmental programs. Democrats say that extending the debt limit has traditionally been a bipartisan effort.