Kevin McCarthy: Debt Limit Should Be Treated “Like Our Own Household”
House Speaker Kevin McCarthy (R-Calif.) previewed Republicans’ strategy regarding how to handle the U.S. debt Limit after Treasury Secretary Janet Yellen The limit will be reached next Wednesday, it was warned.
Analysts believe that the battle over the debt ceiling could become a political showdown with Republicans trying to tie the raising of the debt limit to other provisions. Some suggested that spending cuts should be included in a debt limit agreement.
“What I really think we would do is treat this like we would treat our own household. If you had a child, you gave them a credit card, and they kept hitting the limit, you wouldn’t just keep increasing it. You’d first see what you’re spending your money on. How can we cut items out?” McCarthy told Fox News’ “Sunday Morning Futures.” “Every government has to do this. Every state has to balance their budget, county, city. For the White House to say they won’t even look at it, that they can’t find one penny out of $1 of eliminating waste, I think they’re just trying to put us into bankruptcy.”
McCarthy seemed to support some members who said they wanted spending to be reined back in during the interview. McCarthy was reportedly open to making concessions with various Republican groups before he was elected speaker after 15 rounds.
“This is not our money. This is the hard-working taxpayers’ money. We should start every day with how can we be more efficient. How can we deliver more effectively to the American public. And how can we do it in a more secure way that we don’t spend as much?” The House speaker stated. “Why would we sit back and be so arrogant to say ‘no, there’s no waste in government’? Why wouldn’t we look at all the money that poured out during COVID? What money of that has not been spent? Why wouldn’t you pull that back yet?”
A letter prompted his comments. sent Yellen addressed congressional leaders warning that the ceiling would be breached again. Based on projections, Yellen stated that it would be reached by January 19, prompting the federal government’s take. “certain extraordinary measures” including suspending new investments of the Postal Service Retiree Health Benefits Fund and the Civil Service, Retirement, and Disability Fund, as well as other, similar programs.
“Failure to meet the government’s obligations would cause irreparable harm to the U.S. economy, the livelihoods of all Americans, and global financial stability,” Yellen wrote. It’s not clear, she added, how long those measures would enable the government to pay its obligations but said it is “unlikely that cash and extraordinary measures will be exhausted before early June.”
Treasury data on Wednesday showed that the U.S. Federal Debt was $78 billion less than the limit. The Treasury also had a cash reserve of $346.4 Billion. The department reported Thursday a $85 Billion December deficit. Revenues declined and outlays increased, particularly for debt interest.
“It is therefore critical that Congress act in a timely manner to increase or suspend the debt limit. Failure to meet the government’s obligations would cause irreparable harm to the U.S. economy, the livelihoods of all Americans, and global financial stability,” McCarthy was also addressed by Yellen. Similar letters were sent out to House and Senate leaders.
Some analysts have proposed that the Treasury can bypass the crisis by minting a multitrillion-dollar platinum coin and putting it in the government’s account, an idea widely viewed as an outlandish gimmick. Some argue that the U.S. Constitution is being violated by the debt ceiling. A legal challenge could follow if the Biden administration used that argument.
Preview of Fight
House Republicans were able to use the debt ceiling in 2011 to force President Barack Obama to limit discretionary spending. For most of the remaining decade, spending caps remained the same.
In a preview of a potential fight with the GOP press secretary Karine Jean-Pierre, White House press secretary, stated last week that a debt limit hike should not be negotiated.
“This is not political gamesmanship,” She told reporters Jan. 13 that she believed it. “should be done without conditions.”
Hakeem Jeffries (D.N.Y.), House Minority Leader, and Chuck Schumer (D.N.Y.), stated in a statement. “extreme MAGA Republicans” This could be a long-lasting battle. “plunge the country into a deep recession and lead to even higher costs for America’s working families on everything from mortgages and car loans to credit card interest rates.”
This report was compiled by Reuters
Breaking News Reporter
Jack Phillips is a Senior Reporter for The Epoch Times. He is based out of New York. He reports on breaking news.
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