The bill raising the debt ceiling, effectively allowing the federal government to keep “its door open” until at least January 1, 2025, is being touted as a victory for Speaker of the House Kevin McCarthy.
Is it?
Considering the consequences to our country’s credit rating and resulting disaster if we defaulted how much of a victory is this?
Judging by the quotes and press releases from fellow Republicans “everyone” said this couldn’t be done. “Everyone,” said the Speaker would fail in his efforts to hold the government financially accountable. All Democrats believed that he couldn’t get the job done.
Get the idea that somebody is on the campaign trail already?
Avoiding the government going off a financial cliff and calling it a victory is a little like a baseball manager claiming his team’s relief pitchers did a bang-up job by holding the opposing team to only 15 runs! in a game.
What exactly is the standard this victory is being compared to?
So, in effect, 16 more Democratic representatives voted in favor of the bill compared to the 149 Republicans who did. There were 71 Republican Reps who opposed it, including the Freedom Caucus who wanted the fiscal screws tightened a good deal more than they currently are. No surprises there. Also, 46 Democrats said no to the increase.
Now Americans are accustomed to having debts, so it’s not a complete surprise that there aren’t protests going on around the country. Outside of banks, car dealerships, major sports stadiums, and of course anywhere in Washington, DC. We are awash in car loans, boat loans, credit card debt, mortgages, and so on.
As a country, we are used to running in the red - meaning having more debt than savings.
The average credit card debt for Americans is about $7900 depending on the source.
Debts, like anything done in excess, become numbing after a while. We stop looking at it for what it is.
When adults are fighting to pay off $100K or more in student loans, can we fault them when after a few years they don’t even remember writing the check each month? Just ask anyone in their 50s or 60s who just made their last payment.
Americans are used to their government running in the red as well. Earn a million, spend a billion, the rest being made up on credit extended. In effect history’s largest credit card balance that is being paid off every year in the same way as any other debt.
But not all debt is created equal.
Money spent on infrastructure - the rebuilding of bridges, highways, airports, and the like is essential to maintain a thriving economy.
Money spent supporting a graying population who helped support the country for over 40 years - Baby Boomers - seems only fair. Spending close to $1 trillion per year on defense, when cost overruns are a large percentage of that - the jury is out on that one.
The Lockheed Martin F-35 Lighting II is already $163 Billion over budget and seven years behind schedule.
When is enough really enough?
Should Speaker Kevin McCarthy be taking victory laps around the Capital after “winning” the vote in the house?
Senate approval awaits the bill but is likely to pass and then be signed by the President, who was closely involved in the negotiations.
If all goes well, we will have collectively dodged a bullet this year.
But the gun is still loaded and cocked and waiting for January 2025 to be held in someone else’s hand.
Get updates delivered to you daily. Free and customizable.
It’s essential to note our commitment to transparency:
Our Terms of Use acknowledge that our services may not always be error-free, and our Community Standards emphasize our discretion in enforcing policies. As a platform hosting over 100,000 pieces of content published daily, we cannot pre-vet content, but we strive to foster a dynamic environment for free expression and robust discourse through safety guardrails of human and AI moderation.
Local News
