{"id":1936493,"date":"2023-05-23T23:27:22","date_gmt":"2023-05-24T03:27:22","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-behind-the-debt-ceiling-negotiations-who-has-the-upper-hand\/"},"modified":"2023-05-23T23:32:19","modified_gmt":"2023-05-24T03:32:19","slug":"analysis-behind-the-debt-ceiling-negotiations-who-has-the-upper-hand","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-behind-the-debt-ceiling-negotiations-who-has-the-upper-hand\/","title":{"rendered":"Debt Ceiling Negotiations: Who&#8217;s in Control?"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">12<\/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%2Fanalysis-behind-the-debt-ceiling-negotiations-who-has-the-upper-hand%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=1936493&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--><blockquote>\n<h2>The National Debt: A Debate as Old as the Country Itself<\/h2>\n<p><em>News Analysis<\/em><\/p>\n<p>Back in 1790, Alexander Hamilton proposed a bold plan to Congress: the federal government should assume the wartime debts of the 13 states and retire them with funds borrowed at a lower rate of interest. This would strengthen the role of the federal government and ensure good credit with other countries. But not everyone agreed. Thomas Jefferson, then the secretary of state, argued that public debt was the greatest danger to be feared. Southern states also objected to the plan, but eventually, a compromise was reached. And with that, the national debt was established, making it older than the country itself. Today, as President Joe Biden and House Speaker Kevin McCarthy negotiate over the debt ceiling, they carry on a debate as old as the country itself.<\/p>\n<h3>The Blame Game<\/h3>\n<p>Assigning blame for the federal debt has become a political sport, especially in recent years. Republicans blame Democrats for being &#8220;addicted to spending,&#8221; while Democrats blame the Donald Trump-era tax cuts for the ballooning debt. In fact, both increased spending and decreased revenue have driven the debt higher over much of America\u2019s history. Generally, wars have done the most financial damage. The national debt shot up by triple digits during the Civil War, World War I, and World War II. And the tax cuts of the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-behind-the-debt-ceiling-negotiations-who-has-the-upper-hand\/\" title=\"Debt Ceiling Negotiations: Who's in Control?\">1980s produced double-digit annual increases<\/a> in the debt for nearly a decade.<\/p>\n<h3>Biden\u2019s Bet<\/h3>\n<p>On Jan. 13, U.S. Treasury Secretary Janet Yellen informed Congress that the country was approaching the statutory debt limit. If the debt limit is reached, the government must stop borrowing money. Since the country operates at a deficit budget, ongoing borrowing is necessary to pay the bills. Without the ability to borrow, the government would have to begin delaying bill payments. McCarthy immediately made it clear that Congress would not consider raising the debt ceiling unless Democrats agreed to cut spending. The two leaders met on Feb. 1 to discuss the matter, a meeting both described in positive terms. However, the president insisted that he would not negotiate over lifting the debt limit, as that would endanger both the American economy and the full faith and credit of the United States. As for spending cuts, Biden said there was no point in meeting until Republicans produced a budget showing exactly which cuts they intended to make. That began a three-month standoff during which McCarthy repeatedly called for negotiations, which Biden ignored.<\/p>\n<h3>McCarthy\u2019s Coup<\/h3>\n<p>On the afternoon of April 25, Republicans introduced the Limit, Save, Grow Act into the House of Representatives. The bill proposed to raise the debt ceiling just enough to reach into early 2024 while <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/newt-gingrich-the-biden-opportunity-for-republicans\/\" title=\"Newt Gingrich: The Biden Opportunity For Republicans\">limiting federal spending<\/a> to the 2022 level, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mccarthy-says-house-will-vote-on-lifting-debt-ceiling-into-2024\/\" title=\"McCarthy Says House Will Vote on Lifting Debt Ceiling Into 2024\">capping spending growth<\/a> at 1 percent annually for a decade, clawing back unspent COVID-19 money, increasing work requirements for some Medicaid and the Supplemental Nutrition Assistance Program (SNAP), and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mccarthy-frustrated-with-bidens-delays-on-debt-issue-says-excessive-spending-must-stop\/\" title=\"McCarthy upset with Biden's delay on debt, calls for end to overspending.\">loosening permitting requirements<\/a> for oil and gas drilling. The next afternoon, while President Biden prepared to host South Korean President Yoon Suk Yeol for a state dinner, McCarthy brought the Limit, Save, Grow Act to a vote. It passed by one vote. Just like that, McCarthy had achieved a major victory, confounding naysayers by passing a bill that both increased the debt limit and staked out Republican budget demands for 2024 and beyond. Five days later, Biden invited McCarthy to the White House to discuss the debt limit.<\/p>\n<h3>At the Table<\/h3>\n<p>On May 1, the same day that Biden issued his invitation to McCarthy, Yellen again notified Congress of the impending x-date when the government would no longer be able to meet its obligations in full. The date would likely come in June, Yellen said, possibly as early as June 1. She urged Congress to act. By assigning responsibility for the debt crisis to each other, Biden and McCarthy both hoped to win public opinion to their side. The president, though, seemed to have an ace in the hole.<\/p>\n<\/blockquote>\n<p>The national debt has been a topic of debate since the country&#8217;s founding. Today, as President Joe Biden and House Speaker Kevin McCarthy negotiate over the debt ceiling, they carry on a debate as old as the country itself. Assigning blame for the federal debt has become a political sport, especially in recent years. On Jan. 13, U.S. Treasury Secretary Janet Yellen informed Congress that the country was approaching the statutory debt limit. McCarthy immediately made it clear that Congress would not consider raising the debt ceiling unless Democrats agreed to cut spending. That began a three-month standoff during which McCarthy repeatedly called for negotiations, which Biden ignored. On the afternoon of April 25, Republicans introduced the Limit, Save, Grow Act into the House of Representatives. The bill proposed to raise the debt ceiling just enough to reach into early 2024 while limiting federal spending to the 2022 level. The next afternoon, McCarthy brought the Limit, Save, Grow Act to a vote. It passed by one vote. Just like that, McCarthy had achieved a major victory, confounding naysayers by passing a bill that both increased the debt limit and staked out Republican budget demands for 2024 and beyond. Five days later, Biden invited McCarthy to the White House to discuss the debt limit.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In 1790, Alexander Hamilton, the 32-year-old Treasury Secretary, suggested that the US government should take on the 13 states&#8217; $25 million wartime debts and pay them off with borrowed funds at a lower interest rate. This proposal was presented to the first US Congress.<\/p>\n","protected":false},"author":1793,"featured_media":1936494,"comment_status":"open","ping_status":"closed","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":[543],"tags":[10142,4154,5487,11860,12067],"class_list":["post-1936493","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times","tag-ceiling","tag-control","tag-debt","tag-negotiations","tag-whos"],"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\/1936493","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\/1793"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1936493"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1936493\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1936494"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1936493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1936493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1936493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}