Members of the United States Lower House approved the extension of the national debt and raised the government’s debt limit to $ 28.9 trillion. However, President Joe Biden will need to sign the bill by October 18 for the measure to take effect. This decision has generated controversy among Democrats and Republicans.
This Tuesday in the United States, members of the House of Representatives agreed to postpone the national debt until December of this year and raise the debt limit of the Executive to 28.9 trillion dollars. In this way, the Federal Government will have a few additional months to pay its bills, temporarily avoiding a default that would have harmed the local economy. The bill passed by a party line vote of 219-206.
Richard Neal, chairman of the House Ways and Means committee, assured that “we have temporarily averted the crisis before next week’s deadline, but in December, members of Congress will have to choose to put the country before the party. and avoid non-compliance. “
The Democrat and member of the House, Jim McGovern, also spoke on the matter. “I’m glad this at least allows us to prevent a totally self-made and totally avoidable economic catastrophe while working on a longer-term plan,” he said.
But this relief is temporary, since Congress will have to review the issue in December. And given the risk posed by the measure, lawmakers will have to complete federal spending bills and work to avoid a government shutdown. They have until December 3 to carry out these tasks.
The Treasury Department predicts that the United States will no longer be able to pay its debts around October 18. For this reason, President Joe Biden must sign the measure before that date. Since 2002 in this country, the debt limit has been raised or suspended about 18 times.
Democrats vs. Republicans
An influential person in this decision was the Republican leader of the Senate, Mitch McConnell. He was one of 11 Republicans who backed the Democrats’ bill. However, he insists that he will not do it again.
In a letter to US President Joe Biden, McConnell said: “His lieutenants on Capitol Hill now have the time they said they lacked to address the debt ceiling through independent reconciliation, and all the tools to do so.” And he added that “they cannot invent another crisis and ask for my help.”
In fact, the move sparked a dispute between Republicans and Democrats. Republicans believe that Democrats have insisted on extending the debt because they are determined to invest billions of dollars in programs for social expansion, infrastructure and climate change.
But the Democrats defend their position. They blame the administration of former Republican President Donald Trump, who cut taxes and spending programs. In addition, he prioritized investing in the construction of a southwest border wall to keep immigrants out.
And while Republicans accuse Democrats of “tax embezzlement” and “disregard for mounting debt,” Democrats accuse Republicans of being willing to allow the country to default on its debts to score political points. In November 2022, the Congressional elections will be held. Republicans will seek a majority in the seats.
Finally, deferring debt avoids a “default” in the US economy, which would have a strong impact on global financial markets built on the fundamental security of US government debt. In addition, routine payments by the Administration would be called into question. to Social Security recipients, disabled veterans, and active duty military personnel.
With Reuters and AP