Only in Washington D.C. can you get congratulated for simply doing your job. President Joe Biden and House Speaker Kevin McCarthy both took a victory lap last week with the signing into law of the Fiscal Responsibility Act of 2023. The President and the Speaker did the right thing by reaching a compromise deal leading to legislation to lift the debt ceiling, thus avoiding a fiscal calamity. The debt ceiling drama, which had consumed Washington D.C. for the past several weeks is over for now. Let’s hope that Congress can get back to work on more important issues, such as immigration reform, border security, and gun violence. As I stated in a previous blog on the subject, the debt ceiling showdown could have been avoided if the President pushed through a debt ceiling resolution last fall when the Democrats controlled both houses of Congress. Now, with the House of Representatives in the hands of Republicans, Biden had to move away from his position of not negotiating to lift the debt ceiling. It was inevitable that the President would have to negotiate with Speaker McCarthy to get any legislation passed. Highlights of the Debt Ceiling Legislation:
In the Fine Print:
In the end, the debt ceiling legislation was a win for both President Biden and Speaker McCarthy. The President can claim success for signing into law a truly bipartisan piece of legislation and minimizing draconian budget cuts that Republicans were demanding. McCarthy can claim that he extracted some spending cuts and imposed new spending discipline on the Democrats. He also showed that he could lead the House and get results in the face of strong opposition from the conservative members of his party who demanded far steeper spending cuts. It will be interesting to see if he is punished by the Freedom Caucus for not extracting more spending cuts from the Democrats. The spending “cuts” won’t put a dent in the massive federal debt and ongoing budget deficits that this country faces. But at least the debt ceiling negotiations got the federal government talking about the need for fiscal discipline. But it will be up to the American electorate to demand that tough choices be made, sooner rather than later. The longer the tough fiscal choices are ignored, the more painful the solutions will become. My views on the debt ceiling have not changed. I still think that it should be abolished. Government debates over pubic debt and borrowing limits should be part of the appropriations and budgeting processes. It is a little late to think about how to pay for something after you have already ordered it.
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2 Comments
Test Response
6/16/2023 07:45:22 am
This is a test response.
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Eric
6/16/2023 12:18:14 pm
Seems to be working! :)
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