Ordinary Americans have a tough enough time trying to get by financially each day. So why add stress to that every time the debt ceiling deadline comes due in Washington?
Experts tell us if Congress doesn’t raise the debt limit — which means no more than paying bills it already has approved — that could send the economy into turmoil. It could happen as early as June, but maybe a couple of months later.
Perhaps some wealthy people might worry about a decline in their investments. But ordinary people who are paying attention already are fretting over whether there will be a recession, whether they will lose their jobs, whether their small businesses will survive or whether their Social Security payments or SNAP benefits won’t come on time. They wonder if they should go ahead with planning that special vacation, fancy wedding or making that big-ticket purchase.
And it’s not a one-time worry. In the past, when an agreement has been reached, it has only put off the time when the debt ceiling threat will return.
People don’t need this many points added to their blood pressure. Citizens of no other nation have to go through this.
Republican lawmakers have perfected the technique on this: When they have controlled Congress and the presidency, they have repeatedly enacted tax cuts geared to benefit the super-rich. Later, when they are not in control, they weaponize the debt ceiling to try to force huge spending cuts that target a wide range of Americans.
Staff members on both sides are working to negotiate a solution. But there are hurdles that appear to make it difficult to settle this time.
U.S. House Speaker Kevin McCarthy has only a tenuous grip on his caucus and may find it hard to deliver votes needed for a deal. Even if the House comes to an agreement, the Senate may be another hurdle.
No one really knows how much economic damage the nation will suffer if it doesn’t deal with the debt ceiling one way or another. A lot will have to do with whether investors remain confident that U.S. Treasuries are a rock-solid investment. That confidence could be undermined even if there is a last-minute settlement, should investors worry about the incessant brinkmanship continuing into the future.
If the United States government loses its special standing as the world’s most secure haven for investments, it will make it harder to deal with future challenges, such as recessions, pandemics or anything else that requires a lot of emergency borrowing.
Guess who will bear the brunt of that? Average Americans, who should be loudly making it clear they are tired of debt limit threats.
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