President Biden on Monday urged Congressional leaders to raise the debt limit, buoying Republicans for the “reckless” and “outrageous” hurdle ahead of a default deadline later this month, which he warned would ” A self-inflicted wound that takes our economy on a cliff.”
Mr Biden, trying to make everyday Americans aware of the risks, warned he could see the effects earlier this week if Senate Democrats were not able to vote to raise the debt limit. Debt limits govern the amount the government can borrow to meet its financial obligations, which include Social Security checks, salaries for military personnel, and other bills.
“It starts with a simple truth: the United States is a country that pays its bills and always has been,” Mr Biden said. “If we’re going to make good on what’s already been approved by past congresses, and past presidents and parties, we’re going to have to pay for it.”
The remarks heightened public engagement by Mr Biden on the issue at risk of an economic crisis.
Mr Biden told Republicans President Donald J. Voted several times to raise the debt limit under Trump, but this time Democrats are threatening to thwart any attempt to raise it. He said he would not expect Republicans to “do their job,” but warned them “not to use procedural tricks to stop us from doing things.”
Technically, the United States hit its debt limit in late July after a two-year extension that Congress agreed to in 2019. Treasury Secretary Janet L. Yellen has been using “extraordinary measures” ever since to delay a default. They are essentially fiscal accounting tools that curtail certain government investments in order to continue paying bills.
Ms Yellen warned Congress of “disastrous” consequences last week, should lawmakers fail to suspend or raise the statutory debt limit before October 18, which the Treasury believes is the date when the United The United States would run out of enough money to pay all its bills.
Congress has raised debt limits to cover spending already approved, and the Treasury warns that failure to do so will tank financial markets and have a massive impact on Americans: Defaults could stall Social Security checks, military May delay soldiers’ pay, and interfere with child tax credit payments.
But Republicans – who voted to raise the debt cap by trillions if their party controls Washington – have moved to block the spending bill needed to avoid default. Instead, Republicans, including minority leader Senator Mitch McConnell of Kentucky, have sought to put political responsibility on Democrats, who are at the same time seeking to push for a massive social policy bill that could cost $3.5 trillion. .
“Bilateralism is not a light switch that Speaker Pelosi and Leader Schumer can flip to borrow money and spend it,” Mr McConnell wrote In a letter to Mr Biden on Monday, New York Senator Chuck Schumber, referring to the majority leader. “For two and a half months, we have only warned that since your party wants to rule alone, it will have to handle the debt ceiling alone.”
The president said he planned to speak to McConnell about the letter: “He and I have been down this road once before,” Biden said.
Democrats have so far refused to try to raise the debt limit through a fast-track process known as reconciliation. On Monday, Mr Schumer told Democrats that a spending bill needed to reach Mr Biden’s desk in weeks, not weeks.
“Let me be clear about the task ahead of us: We have to get a bill on the president’s desk dealing with the debt limit by the end of the week. Period. We don’t have the luxury of waiting until October 18th,” he wrote “Dear Colleague” Monday letter.
Asked whether he supports a reconciliation to raise the debt limit, Mr Biden said the process would be “full of all kinds of potential danger or miscalculation,” and said the way forward would be to raise the limit. There will be one vote on one bill.
Administration officials say Mr Biden will continue to pressure Republicans – by cracking their filibuster – and allow Democrats to vote on their own to raise the limit this week.
“Let’s vote,” said Mr Biden. “And finish the mess.”
As he urged Congress leaders to find a way on raising the debt limit, Mr Biden must still support for a bipartisan infrastructure deal and a detailed social spending plan.
“I am able to close the deal on 99 percent of my party,” said Mr. Biden, “two people” living in opposition to the second piece, a reference to Senator Joe Manchin III of West Virginia and Senator Kirsten of Arizona.
“It’s not a smart thing to talk to yourself in public,” Mr Biden said, when asked whether he would support a lower figure on a reconciliation package.