US President Joe Biden speaks at the Southern Court Auditorium on the campus of the White House in Washington, DC on October 14, 2021.
Drew Anger | Getty Images
President Joe Biden signed a bill on Thursday to raise the national debt ceiling to early December, postponing the possibility of an unprecedented federal default, which would lead to economic disaster.
After the Senate passed a party vote last week, the House of Representatives approved an increase in the country’s borrowing limit of $480 billion on Tuesday. The final approval was obtained after a long confrontation with the Republicans in the Senate. The Republicans undermined the initial efforts of the Democrats by obstructing the bill. The delay required 60 votes to stop.
In the end, a small number of Republicans in the Senate agreed to join the Democratic Party and voted to end Republican delays and a final vote on legislation. However, Minority Leader Mitch McConnell said that Republicans would not support another increase in December.
Treasury Secretary Janet Yellen (Janet Yellen) had warned that the United States will reach its borrowing limit on Monday, and she and others warned that this unprecedented situation could bring about a country that is still struggling with a global pandemic. Economic disaster. The government’s regular payments to Social Security beneficiaries, disabled veterans, and active military personnel may be delayed, and the economic impact of the United States may spread to the global market.
The passing of the short-term debt ceiling increase ensures that the United States will continue to fulfill its obligations for now. But it set another potential cliff at the end of the year-when legislators will also work to pass a federal funding bill to avoid a government shutdown.
Republicans have said that Democrats should use budget strategies to raise debt limits without Republican support, just like the procedures Democrats used in Biden’s massive climate change and social safety net programs. But the Democrats rejected this choice. The conflict between the two parties left Congress without a clear solution to avoid the next default deadline in December, but the White House emphasized that it is still seeking bipartisan increases.
Lawmakers from both parties use the debt ceiling vote as a lever for other priorities. Speaker of the House of Representatives Nancy Pelosi threatened to vote against raising the debt ceiling during President Donald Trump’s tenure, stating that she has no intention to support raising the debt ceiling so that Republicans can give the wealthy tax cuts again. Republicans managed in 2011 to force President Barack Obama to accept a deficit reduction of about $2 trillion as a condition for raising the debt limit-although lawmakers later cancelled some of these reductions.
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