Cogito Ergo Non Serviam
House Passes Debt Ceiling Increase in Landslide
The House of Representatives approved the Biden-McCarthy debt-ceiling deal last night. The vote was not even close, 314 to 117 with four members not voting. This demonstrates the impotence of the extremes on both sides of the aisle. The GOP hardliners ranted and raved and demanded more cuts. They got headlines about their complaints but nothing else. The left complained about all kinds of small details, and none of it was worth cratering the global economy over. What the world learned was just how few in number these loudmouths are.
The extremes on both sides were upset because what they wanted was not on the menu. The progressives wanted to leave the work requirements on social safety net programs left alone, they wanted taxes raised and they objected to the relaxation of energy permitting processes. The regressive MAGA crowd wanted an end to social programs and reduced taxes. Neither was an option. What was on the menu was this deal or the destruction of the post-war, global financial system. The US dollar underpins that system, and if the US currency wobbles, the whole edifice is at risk. The choice was the bill or a disaster. And the extremists chose disaster. It is like a starving person turning down a decent meal because there are not enough condiments.
The vote broke down in a very interesting way. Among those voting in favor of the deal were 165 Democrats and 149 Republicans. Those voting against were 46 Democrats and 71 Republicans. While the GOP managed to get a majority of their members to back the deal, most of the votes in favor came from Democrats. This is profoundly embarrassing for Speaker McCarthy, but he probably is so relieved to have passed the deal he negotiated that he does not care.
The bill now goes to the Senate where it is likely to pass without amendment. That is what has to happen because if there are amendments, the bill has to go back to the House for another vote. The US Treasury does not have time for that. Treasury Secretary Yellen says the ready cash will run out on Monday if Congress does not raise the ceiling.
Yet there are senators who want to tweak the bill. As an example, Tim Kaine of Virginia (who had the second spot on the Democratic ticket when Hillary Clinton ran for the White House) wants a vote on an amendment that would remove a pipeline that is getting special treatment in the debt ceiling bill. There is no pipeline so bad that handing the century over to China is worth it. Senator Kaine should find another way to stop the pipeline. Perhaps he could get a bill passed or get his amendment attached to another bill. Playing with this bill is too dangerous.
NBC News reports that Senator Majority Leader Chuck Schumer (D-NY) "just placed the debt limit bill on the Senate calendar so senators can start the process to pass it tomorrow [June 1]. The measure could take several days to get through the Senate, depending on whether all senators agree to move forward quickly." One hopes that Mr. Schumer and his opposite number Mitch McConnell (R-KY) can keep their people onside.
The whole crisis is the result of a bad idea. Capping the amount of debt the country can have while not stopping the creation of new spending without revenue increases just sets up a problem that does not need to exist. If Congress wants to reduce spending, all it has to do is vote on cuts. The problem is no one in Congress wants cuts to affect his or her constituency, and one party believes taxes are satanic rather than a legitimate demand of society on economy resources.
The next Congress should abolish the debt ceiling if this one cannot.
© Copyright 2023 by The Kensington Review, Jeff Myhre, PhD, Editor. No part of this publication may be reproduced without written consent. Produced using Ubuntu Linux.
|
|
|
