Politically, ‘No One Would Be Blameless’ If US Defaults, Biden Says
"There’s no bipartisan deal to be made solely, solely on their partisan terms," president warns
No one in Washington — Democrats nor Republicans — would escape political blame if once-unthinkable happens and the federal government falls into default because political leaders on opposite ends of Pennsylvania Ave couldn't strike a deal to raise the federal debt ceiling, according to President Biden.
Biden's statement is perhaps a warning to his Republican counterparts who might believe that a default would be smart politics because they think that the president would get hit with the lion's share of blame.
The president also told Republicans that spending cuts alone would not be sufficient to find accord to raise the debt ceiling, but rather raising tax revenues must also be part of the discussion.
Republicans and Democrats are on a very serious clock as the federal government races towards that so-called “x date” of June 1 when it will no longer be able to pay its bills and fall into default.
Such a first-ever default by the US government would trigger a widespread economic meltdown.
Although Congress has approved an increase in the government's debt limit dozens of times under presidents of both parties in past decades, Speaker Kevin McCarthy and other House Republicans want to hold such an increase hostage to Biden and Democrats agreeing to a raft of draconian cuts in federal spending.
Although some Republicans might think that default would be politically advantageous for them heading into next year's elections, Biden cautioned against such thinking.
At a press conference in Japan, where he was wrapping up participation in the G7 meeting of world leaders, President Biden was asked about who would be blamed if federal leaders can't reach a deal in time to avert default and the economic meltdown that would result.
“On the merits, based on what I’ve offered, I would be blameless. On the politics of it, no one would be blameless,” Biden said. “And by the way, that’s one of the things that some are contemplating.
“Well, I gotta be careful here. I think there are some MAGA Republicans in the House who know the damage that it would do to the economy,” the president added. “And because I am president and the president is responsible for everything, Biden would take the blame and that’s the one way to make sure Biden is not reelected.”
Biden also counseled Republicans to get off their “extreme positions,” in order to reach a compromise.
Biden said that he would accept some curbed spending but that increases in tax revenues must also be on the table.
“And so let me be clear: I’m not going to agree to a deal that protects, for example, $30 billion tax break for the oil industry, which made $200 billion last year — they don’t need an incentive of another $30 billion — while putting healthcare of 21 million Americans at risk by going after Medicaid,” the president said. “I’m not going to agree to a deal that protects $200 billion in excess payments for pharmaceutical industries and refusing to count that, while cutting over 100,000 school teachers and assistance jobs, 30,000 law enforcement officers, jobs cut across the entire United States of America.
“I’m not going to agree to a deal that protects wealthy tax cheats and crypto traders, while putting food assistance at risk for nearly nearly 1 million Americans,” he added. “It’s time for Republicans to accept that there’s no bipartisan deal to be made solely, solely on their partisan terms. They have to move as well.”
Please support our work…
Also, please subscribe…