McCarthy: Democrats Must Cap Spending to Avoid US Debt Default

…"I want to sit down with him now so there is no problem," McCarthy said in an interview with Fox News, referring to Biden. "I'm sure he knows there's places that we can change that put America on a trajectory that we save these entitlements instead of putting it into bankruptcy the way they have been spending."

McCarthy pointed to the Trump-era agreement by U.S. lawmakers' in 2019 to suspend the statutory debt limit on Treasury Department borrowing until a later date as evidence that such compromise is possible.

"I believe we can sit down with anybody who wants to work together. I believe this president could be that person," he said.

House Oversight Committee Chairman James Comer said on Sunday he hoped debt default could be avoided but put the onus on Democrats to agree to spending cuts…








Read more news: https://www.newsmax.com/headline/mccarthy-debt-default/2023/01/15/id/1104482/











Democrats no longer have all the federal power. It would be unreasonable of them to play chicken with the debt ceiling and default in order to not negotiate. I am sure a reasonable compromise.can be reached to give Americans who elected each side into office something they want.

 

Easy. Cut spending on immigration and military. That gives you what you want, right? Reduced spending.

 

A spending cap won't affect this budget. This battle is about raising the debt limit to cover the spending that has already been legislated. If we don't, the cascade effect it would have on our economic security and that of most of the world will make the big crasg of 1929 seem like child's play. It would be like me refusing to make my car payments, a budget item to which I willingly and knowingly agreed.

 

The military side of things is no longer exclusively a GOP issue. If they tried it the Democrats would kick up a massive stink too because it would prevent hundreds of billions of dollars in lethal weaponry being given to the Ukraine. These ain't the days of Iraq and Vietnam anymore, times have changed.

Say what you like, there is some genuine progress on anti-war issues on the right. A lack of entangling wars from Trump was a big reason a lot of people supported him. Not perfect, but night and bloody day compared to W Bush, HW Bush and Reagan that's for damn sure.

As for your proposal, I think it could work with a roughly equal commitment on other cuts from spending the GOP actually opposes.

The GOP position is not as strong as it seems. Democrats can get around the lack of a majority in the House by passing treaties, which don't require consent of the House. Indeed, multilateral treaties written by global NGOs and think tanks are the preferred method of legislation for most of the establishment left worldwide these days.

 

My point was somewhat tongue-in-cheek. The OP talked about giving each side something they wanted. But he started from the premise of spending cuts. So if spending cuts is what the GOP wants, they get it. And in exchange they don’t get to complain about what gets cut.

Personally, I think the budget deficit is too high. It needs to be reduced. That can be achieved through spending control and more revenue. Both sides of the equation. It probably means higher taxes for a while. Even though I’m a fiscal conservative. Or perhaps I should say fiscal realist.

Neither party should play chicken with the debt limit. Address the deficit in a responsible, bipartisan way but increase the debt limit as necessary while doing so.

 

When it comes to Cuts in "Discretionary Spending"...
Everybody in Congress seems to have the Same Mantra:
"Cut Everybody Else, BUT DON'T CUT ME"

 

This shows what I have predicted: The GOP-controlled House is ready to force the US to go into default, if they cannot force the Dems into creating a recession by severely cutting the deficit. In either case, they win. The US, however, loses. But, that's okay with the GOP, if it helps them regain full power in 2024.

 

Democrat president! Suddenly the GOP finds their fiscal talking points gain....

 

While true, don't you think it is a good idea to demand spending cuts for the next budget? If we don't, then the next budget will be even worse unless we do something.

 

This!

Of course, the GOP politicians know this very well. Basically, since the great recession (and even before), GDP growth was bought through the government deficit. This is very easy to calculate. in a $20 trillion economy, 2% GDP growth is $400 billion. If the deficit is $400 billion, there would be no GDP growth, if not for government borrowing and injecting the money into the economy.

Therefore, if you drastically cut the deficit, it is highly likely that there will be at least 0% GDP growth, if not a recession. Of course, the GOP WANTS a recession when a Dem president is in office, so they can say: We told you so, Dems are bad for the economy. The GOP would rather crash and burn the country to be able to hold on to power. Unfortunately, most people are unable to follow this money trail.

Not that the Dems are much better.....

 

Why the primary duties of the federal government rather that secoundary and even not constitutionally authorized functions?

Why not an across the board on everything but national defense the primary function of government. That would give you what you want assuming you don't want a government shutdown.

 

The Dems never had any.

 

Spending can be rescinded and no need for a default that is just scare tactics.

 

I hope cool heads prevail and reach a compromise on this that both sides can live with.

 

Except for those that did

 

Treaties take a 2/3,vote in the senate.

 

I am convinced the Trump supporting Congressmen would be stupid enough to default, I am not convinced that McCarthy is that stupid, bent for power yes, but to deliberately go into default would be a knock on him too.

 

The federal government is brining in record high amounts of revenue now. No real way to get more. It is spending that needs to be curtailed.

 

That’s been true since the beginning of the Republic we have here. That leads to a % across the board so everyone is equaly affected.

 

It's also unreasonable to do everything the GOP wants too. It's very unreasonable to not pay one's obligations. It's also unreasonable to be worried about debt when their guy was president they supported policies that were known and have increased that same debt. Basically, nothing being done at the moment in public on this issue by the GOP has reached the threshold of reasonable. I'm behind closed doors more reasonable things are going on.

 

That’s all wrong. We are willing to compromise and don’t need or want cuts that will cause a recession the media would blame us for. Simply returning to the FY2022 baseline for future spending would be enough.

 

Regain full power of what? Shell of a country?

I'm reading there's a process that can avoid Joe .. errr.... Kevin McCarthy and his minions... Called a discharge petition

https://www.forbes.com/sites/benrit...rt-a-disastrous-debt-default/?sh=44df00d7337b

There are more than a dozen real GOP who will sign on if, and when, the time comes..

If not, continue servicing our debt without Congress, since you really shouldn't negotiate with terrorists.

 

That is true, but now McCarthy serves at the pleasure of the bomb thrower GOP extremists, who held him hostage for getting their vote for Speaker of the House.

This is the problem: The House GOP will try to force severe spending cuts, creating a recession, just so they can say: Biden did this.

 

With a divided government there has to be dialogue and compromise. Neither side gets 100% of what they want going into this. Default only happens if one side doesn’t give an inch and the other refuses to capitulate to a my way or the high way stance of the other.

 

That is the objective here to have a reasonable compromise both sides can live with negotiated behind closed doors. I’m hopeful that the positions going were opening bids by each side and that they will meet in the middle