With a June default date looming, President Joe Biden is meeting with Democrat and Republican leaders on Tuesday to discuss the urgent issue of the debt ceiling, the legal cap that the US can borrow.
The gathering, which will include Senate Majority Leader Chuck Schumer, Senate Minority Leader Mitch McConnell, House Speaker Kevin McCarthy, and House Minority Leader Hakeem Jeffries, is an important first step in keeping the US from defaulting on its debt. But because Democrats and Republicans are so dug in on how to approach debt ceiling negotiations, the meeting isn’t expected to result in significant progress just yet.
As they’ve repeatedly emphasized, Democrats are intent on a “clean” debt ceiling increase that isn’t paired with any spending cuts. Republicans, meanwhile, are dedicated to using the must-pass debt ceiling bill as leverage for serious social spending cuts that have no chance of passing the Senate.
That disagreement has been the root of an enduring standoff between both parties up to this point, and it’s likely to be reaffirmed at Tuesday’s meeting. The gathering, however, signals that both parties sense the importance of beginning talks immediately given how little time lawmakers have before a possible deadline.
Raising or suspending the debt ceiling is a vital action Congress needs to take every few years to make sure that the country is able to pay its bills. If lawmakers fail to do so and the country defaults, the government could delay important payments, including Social Security checks; interest rates will skyrocket; and unemployment is expected to go up as well. The country’s credit rating would also fall, which could have ripple effects across the global economy, setting off a financial crisis.
What Democrats want from debt ceiling talks
Democrats, who felt burned by Republicans in 2011, when the GOP similarly tried to use a debt limit standoff to extract major concessions, have vowed not to negotiate on the debt…
Read the full article here
