{"id":1924970,"date":"2023-05-05T09:42:52","date_gmt":"2023-05-05T13:42:52","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/paul-krugman-offers-predictably-insane-take-on-debt-ceiling-showdown\/"},"modified":"2023-05-05T09:42:52","modified_gmt":"2023-05-05T13:42:52","slug":"paul-krugman-offers-predictably-insane-take-on-debt-ceiling-showdown","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/paul-krugman-offers-predictably-insane-take-on-debt-ceiling-showdown\/","title":{"rendered":"Paul Krugman Offers Predictably Insane Take on Debt Ceiling Showdown"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fpaul-krugman-offers-predictably-insane-take-on-debt-ceiling-showdown%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1924970&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>                                                                                                                                                                       Economist Paul Krugman poses before a conversation at the 92nd Street Y on Sunday, Oct. 14, 2018, in New York.<\/p>\n<p>          Washington is facing yet another showdown over the debt ceiling, the legal limit on how much debt the federal government can take out. Treasury Secretary  Janet Yellen  is now  warning  Congress that we might reach that limit as soon as June 1, meaning  Congress  must act to pass a bill raising the debt limit. If it fails to, the United States would default on its debt \u2014 a catastrophic outcome that would cause an economic crisis.<\/p>\n<p>So, it\u2019s no surprise that as the clock ticks closer to catastrophe, the rhetoric in this debate is getting heated. But what is surprising is just how little resemblance that rhetoric bears to the actual reality of the situation.<\/p>\n<p> SIGNS OF STRESS START TO BUILD IN MARKETS AS DEBT CEILING DEADLINE LOOMS <\/p>\n<p>President Joe Biden has accused \u201cMAGA Republicans\u201d of \u201creckless hostage-taking\u201d and House Speaker Kevin McCarthy (R-CA) of \u201cthreatening\u201d to \u201cdefault on the national debt.\u201d<\/p>\n<p>    Meanwhile, the liberal media are similarly condemning Republicans. In perhaps the most stark and unhinged example, New York Times columnist Paul Krugman  accused  Republicans of engaging in \u201ca financial version of January 6.\u201d<\/p>\n<p>Based on all this rhetoric, you\u2019d be forgiven for thinking that Republicans are for some reason refusing to raise the debt limit and risking a national crisis. But that\u2019s not the case. The House, which is the only part of the federal government Republicans control, has already  passed legislation  that would raise the debt limit and eliminate the threat of default \u2014 until the next time we hit the limit. <\/p>\n<p>That legislation, the  Limit, Save, Grow Act of 2023 , not only raises the debt ceiling but also cuts spending back to fiscal 2022 levels, which, spoiler alert, were still quite high. It also includes some partisan victories for Republicans, such as repealing the crony climate subsidies Democrats passed in the so-called Inflation Reduction Act, blocking Biden\u2019s student loan bailout, revoking expanded IRS funding, and adding work requirements to Medicaid.<\/p>\n<p>This means that in order to avoid a default, all Democrats have to do is pass this bill through the Senate, which they control, and have Biden sign it into law. The ball is 100% in their court.<\/p>\n<p>\u201cOne party has taken care of the debt ceiling. We have lifted the debt ceiling. \u2026 The Democrats have not,\u201d McCarthy  said  after the bill\u2019s passage. \u201c[If] the president wants to make sure the debt ceiling is going to be lifted \u2014 sign this bill.\u201d<\/p>\n<p>So Republicans are not forcing America to default. If the U.S. does, it will be because Democrats chose to default rather than accommodate the Republican concessions \u2014\u00a0which, to be clear, aren\u2019t exactly draconian. In fact, the legislation has received ample criticism from the Right because it doesn\u2019t do nearly enough to reduce the debt.<\/p>\n<p>As James C. Capretta  wrote  for the Dispatch:<\/p>\n<p>             \u201cWhile these savings are significant, they remain small relative to the size of the nation\u2019s budget problem. Even if the House bill were to become law \u2014 a highly unlikely scenario \u2014 the government would still borrow $15.5 trillion over the next decade and run an annual deficit in 2033 of nearly $2.2 trillion, or 5.6 percent of GDP. For context, the average deficit from 1970 to 2008 was 2.4 percent of GDP.\u201d                So, Republicans aren\u2019t \u201cholding the Democrats hostage\u201d or anything \u201ccrazy\u201d like that. They\u2019re just asking that we contribute a few trillion dollars less to our mountain of debt over the next decade.<\/p>\n<p>What\u2019s more, Democrats can negotiate with McCarthy. They could almost certainly reach some sort of compromise that includes fewer partisan poison pills. But they are demanding that Republicans blindly raise the debt limit without any reforms or concessions. That\u2019s like responding to your out-of-control credit card spending by taking out a new credit card with a higher limit yet not changing any of your habits. It\u2019s fundamentally unreasonable, and Republicans need not go along with it.<\/p>\n<p>They\u2019ve done their job. And it\u2019s not \u201cinsurrection\u201d or \u201chostage-taking\u201d to ask that the government slightly reduce the rate at which it is burying the public in debt.<\/p>\n<p>If the U.S. does default, that catastrophic outcome will ultimately be the Democrats\u2019 fault because they will have chosen partisan stubbornness over modest concessions in the public\u2019s best interest.<\/p>\n<p> CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER <\/p>\n<p>Brad Polumbo ( @Brad_Polumbo ) is a libertarian-conservative journalist and the co-founder of BASEDPolitics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Economist Paul Krugman poses before a conversation at the 92nd Street Y on Sunday, Oct. 14, 2018, in New York. Washington is facing yet another showdown over the debt ceiling, the legal limit on how much debt the federal government can take out. Treasury Secretary Janet Yellen is now warning Congress that we might reach<\/p>\n","protected":false},"author":1,"featured_media":1924971,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[10142,5487,10570,25919,4462,5531,9823,12152],"class_list":["post-1924970","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-ceiling","tag-debt","tag-insane","tag-krugman","tag-offers","tag-paul","tag-predictably","tag-showdown"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1924970","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1924970"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1924970\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1924971"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1924970"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1924970"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1924970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}