The United States is facing a debt ceiling crisis, and if the U.S. does begin to default on its fiscal obligations, the economic results will be far from pretty.
The Republicans have passed legislation in the House of Representatives that supposedly addresses the problem. In fact, it doesn’t, at least not in any way that won’t create even greater chaos than a default will, because the spending cuts required by that bill would amount to an average cut of 22% in virtually all non-defense government programs.
No responsible Administration can willingly accept such cuts, which would fall on the poorest of Americans and would also affect infrastructure and environmental programs, agriculture, air travel, and health and safety programs in a number of areas.
So why did the Republicans make such a proposal?
Some would say that it’s to force those “free-spending Democrats” back to financial sanity, or at least to negotiate for less federal spending.
I’m not so sure about that. The Republicans were perfectly happy to raise the debt ceiling in a Trump administration when the national debt was significantly increased by the Trump tax cuts, most of which went to the wealthy.
Could it… might it… just possibly be to break the economy temporarily because that’s the only way a Republican candidate could win the presidency?
If the Biden Administration agrees to any significant cuts in non-defense programs, in order to avoid a default, there will be significant negative economic impacts. If it doesn’t agree to heavy cuts, and the Republicans hold fast, there will be a default and negative economic impacts.
Either way, the economy tanks, and Biden gets blamed.
Pure brutal genius, and the poor dumb American public will dump the entire blame on Biden, and that poor dumb American public will get what it deserves. Unfortunately, so will those of us who saw the possibility coming.