By: Roger Aronoff | CCNS
Following a debt deal debacle, a broken border, and corruption at the top levels of government, what now?
With the extended drama over the debt ceiling hike behind us, having passed a compromise deal agreed to by Speaker Kevin McCarthy and President Joe Biden, the good news is that we don’t have to see it play out anymore. Several observations: Kevin McCarthy had a very strong hand that he didn’t play very well. What he should have done was to point out every time he was in front of a microphone that talk of an imminent, catastrophic default was a lie, as was the idea that the GOP was holding the Democrats and the good faith and credit of the U.S. hostage. Yes, compromise was necessary, but he gave up too much, too easily, and the result is that the Biden spending orgy will continue unabated to continue pushing his reckless policies.
The Democrats and their pals in the media are gloating about how they had to act like they were making painful compromises so as not to rub it in and possibly lose more Republican House members, and they feel this gives them the added talking point that Joe Biden is really a historic president, playing the game with skill and wisdom while achieving great things for the country.
Basically, there is easily enough money coming in so that Treasury could prioritize payments, to make sure the U.S. paid principal and interest on the national debt, and not default. And there would be enough to keep paying Social Security and Medicare, and most other entitlements, earned or not. As James Agresti of Just Facts Daily points out, “Federal law requires the Treasury to pay the debt, and the federal government has ample revenues to do so. So if there is a default, it will only be because the Biden administration breaks the law.”