Senate Republicans sow disinformation after $480bn US debt ceiling deal | US
Top Republicans in the Senate are advancing a campaign of disinformation over the debt ceiling as they seek to distort the reasons for needing to raise the nation’s borrowing cap, after they dropped their blockade on averting a US debt default in a bipartisan manner.
The Senate on Thursday passed a bill to allow the debt ceiling to be raised by $480bn through early December, which the treasury department estimates will be enough to allow the government to temporarily avert an unprecedented default on $28tn of debt obligations.
The Senate majority leader, Chuck Schumer, announced the morning before its passage that he had reached a deal with the Republican Senate minority leader, Mitch McConnell, to clear the way for the vote on a short-term extension with GOP support.
The movement came after McConnell made a tactical retreat to back down from weeks of refusal to allow Democrats to raise the debt ceiling by any measure other than through a complicated procedure known as reconciliation that would have required a party-line vote.
The Texas Republican Senator Ted Cruz said on the floor: “Unfortunately, Republicans blinked.”
And some Republicans railed against what they saw as an unnecessarily triumphalist victory speech by Schumer after the deal, while the West Virginia Democratic senator Joe Manchin put his head in his hands during the address and later called it “inappropriate”.
The House speaker, Nancy Pelosi, and majority leader, Steny Hoyer, will set up a vote on Tuesday on the bill passed on Thursday evening, bringing the House back from recess a week early.
But even as McConnell struck the accord to stave off the threat of a first-ever default, the resolution to punt the issue until December did nothing to address the crux of the partisan stalemate and Republicans’ mischaracterization of the issue.
The argument at the heart of the GOP’s insistence – which is likely to resume in two months’ time – is that Democrats should raise the debt ceiling on a party-line basis, in part because they claim the borrowing cap needs to be lifted to pay for Biden’s economic agenda.
“McConnell told them they are going to have to – if they are determined to spend at least $3.5tn more in borrowed money – lift the debt ceiling to accommodate that debt by themselves,” the Republican senator John Cornyn said of McConnell at a recent news conference, referring to Democrats’ social spending plan.
The treasury department acknowledges that raising the debt ceiling would allow the US to continue borrowing in order to finance projects, such as Democrats’ social spending and infrastructure package that is expected to now cost between $1.9tn and $2.2tn.
But economists at the department also say that attempts to portray the need to tackle the debt ceiling as an effort to pay for Democrats’ budget resolutions that are yet to pass Congress amount to disinformation, according to sources familiar with the mechanism.
The criticism comes primarily because the overriding reason for raising the debt ceiling stems from the fact that the US needs to borrow new money to pay the principal and interest on about $8tn of debt incurred over the course of the…
Read More: Senate Republicans sow disinformation after $480bn US debt ceiling deal | US