On May 17, 2023, President Joe Biden addressed the nation to discuss the ongoing debate over the debt ceiling. The United States has been operating under a debt ceiling since 1917, which sets a limit on the amount of money the government can borrow to pay for its obligations. Without an increase in the debt ceiling, the government risks defaulting on its debt, which would have disastrous consequences for the economy and global financial markets. However, it seems that President Biden is not worried about that happening.
The debt ceiling has become a political football in recent years, with lawmakers on both sides of the aisle using it as a bargaining chip in negotiations over spending and taxation.
The President’s remarks came as the Treasury Department announced taking extraordinary measures to avoid breaching the debt ceiling. These measures, which include suspending certain investments and borrowing from federal employee pension funds, will buy the government some time to continue operating while Congress works on a solution. However, these measures are not a long-term solution, and the Treasury Department estimates that they will only provide enough funding to last until October or November of this year. This means that Congress must act soon to raise the debt ceiling and avoid a default.
President Biden has emphasized that the United States has never defaulted on its debt before and that doing so would have severe consequences. He also pointed out that raising the debt ceiling is not about spending more money but rather about paying for obligations that have already been incurred, such as Social Security and Medicare benefits, military salaries, and interest on the national debt.
However, he also partakes in a confidence game which raises insecurity in the public since there’s a question of its genuineness, or is his confidence just a defense mechanism?
“We had a productive meeting yesterday with all four leaders in the Congress. It was civil and respectful, and everyone came to the meeting, I think, in good faith. I’m confident that we’ll get the agreement on the budget, that America will not default,” Joe Biden said. “The leaders have all agreed; we will not default. Every leader has said that.”
After a meeting on Tuesday, House Speaker Kevin McCarthy also expressed some positivity about the ongoing negotiations, stating that the meeting was more productive than previous ones. However, he also mentioned that the two sides still have a significant distance to go. McCarthy shared that he and the President have assigned teams to continue talks on a lower level.
The President’s speech comes at a time of deep political polarization in the United States, with Democrats and Republicans at loggerheads over a range of issues. However, the debt ceiling is not a partisan issue, and both parties have a responsibility to ensure that the government can continue to pay its bills and meet its obligations.
The debt ceiling is a critical issue that requires urgent action from Congress. Failure to raise the debt ceiling would have severe consequences for the economy and the global financial system. President Biden’s speech serves as a reminder of the gravity of the situation and the need for lawmakers to come together and do what is necessary to prevent a default. Let us hope that Congress can rise to the occasion and act in the best interests of the American people.
“I’m confident everyone in the room agreed … that we’re going to come together because there’s no alternative. We have to do the right thing for the country. We have to move on.”
