Closing an urgent debt-ceiling deal with 58-year-old House Speaker Kevin McCarthy (R-Calif.), 80-year-old President Joe Biden irked his party’s left wing, agreeing to resume payments on student loans. Showing that neither extreme side of Democrats nor Republicans get everything they want, the compromise plan to add $1.5 trillion to the $31 trillion national debt is the best possible compromise. Progressive Democrats led by Rep. Alexandria Ocasio Cortez and Sen. Bernie Sanders (I-Vt.) don’t want to see student loan deferments end or to see Food Stamps recipients forced to look for work. Yet, as McCarthy and Biden worked out with their negotiators an acceptable deal, threats were already being made by extremists in both parties, not deterred from sending the U.S. government into default. Vast majorities of Democrats and Republicans welcome the debt-ceiling compromise.
Whether or not Democrats and Republican extremists are happy, Wall Street looks poised for a big rally on news of the debt-ceiling deal. Prospects of defaulting on government debt depressed markets for the last several weeks, rising above markets with a dark cloud. Despite threats to oppose the compromise bill by extremist Democrats and Republicans, McCarthy said the vast majority of Democrats Republicans support the legislation when it comes up for a vote on Wednesday, May 31. “We’re going to try,” to derail the vote, said Rep. Chip Roy (R-Tx.), a leading voice on the conservative House Freedom caucus. Roy knows he doesn’t have the votes of upend Biden and McCarthy’s compromise bill. “This is a good strong bill that a majority of Republicans will voter for,” said McCarthy. “You’re going to have Republicans and Democrats be able to move this to the president,” McCarthy said.
Progressive don’t like government spending frozen to 2023 levels for the next two years until the next continuing budget resolution comes up after the 2024 vote. Sen. Lindsey Graham (R-S.C.) was concerned about the deal’s effect on the Defense budget and spending on the Ukraine War. “Do not intend to default on debt, but will not support a deal that reduces the size of the Navy and prevent continued technological and weapons assistance to Ukraine,” Graham said. No one in Congress supports Biden costly proxy war against the Russian Federation more than Graham. Biden has spent over $200 billion paying for the bankrupt Ukraine government and war with Moscow. Yet no Republicans or Democrats on Capitol Hill questions the ongoing hemorrhage to the U.S. Treasury. Freedom caucus conservatives or progressives don’t question outrageous spending on the Ukraine War.
Freedom Caucus members like Chip Roy complained that the bill didn’t reverse the expansion of the IRS, a part of Biden’s Inflation Reduction Act. “Utter capitulation in progress. By the side holing the cards,” said Rep. Dan Bishop (R-N.C.), seeking more cuts in the current and future budgets. McCarthy was only able to rollback spending to 2023 levels, not start cutting the actual budget. Progressive complained about provisions to increase work requirements for recipients of Food Stamps or other government entitlement programs. Republicans wanted to cut red tape on new fossil fuel drilling, making it easier to increase domestic oil production. Conservatives complained that McCarthy didn’t negotiate a harder bargain, giving into Biden’s progressive agenda. Whatever the misgivings, both parties know what at stake in potentially defaulting on the government’s debt obligations.
Getting some deal with compromises on both sides is better than no deal that defaults U.S. debt. Former President Donald Trump, 76, told a May 10 CNN town hall that he would advise Republicans to let the government default. Trump’s position panders to extremist Republicans, not willing to negotiate with Democrats. Getting the current deal that satisfies neither extreme goes along way in proving that when it comes to the two-party system they can compromise for the good of the country. Watching U.S. credit downgraded would be bad for the U.S. economy, sending the country plunging into recession. McCarthy has captured the forgotten middle of the Democrat and Republican parties. Backing the debt-ceiling bill are the same folks that join together to back Biden’s proxy war against the Kremlin. Democrats and Republicans readily unite on certain bipartisan issues.
Biden and McCarthy got down to brass tacks agreement on a compromise debt-ceiling bill designed to save Wall Street and the U.S. economy. Biden and McCarthy will never satisfy extremists on both sides of the aisle. McCarthy thinks he has enough votes to approve the continuing budget resolution coming up for a vote this Wednesday, May 31. When the dust settles and both sides put the latest debacle to rest, bipartisan members on Capitol Hill needs to take a harder look at Biden’s Ukraine War. Giving Ukraine a blank check to prosecute an unending war against the Kremlin busts the U.S. budget, pulling the rug out from underneath needy American citizens. Whatever happens in Ukraine doesn’t solve the nation’s homeless crisis or working on a better health care system for its citizens. Prioritizing the Ukraine War over U.S. citizens does nothing but waste precious U.S. resources.
About the Author
John M. Curtis writes politically neutral commentary analyzing spin in national and global news. He’s editor of OnlineColumnist.com and author of Dodging The Bullet and Operation Charisma.
