The debt limit is the amount of money Congress allows the Treasury to borrow. It was suspended three times under the Trump administration and has been lifted dozens of times since 1960. Created at the start of World War I so that Congress no longer needed to approve every bond issue, the cap debt has become a political weapon like borrowing. has increased sharply over the past two decades.
McConnell has said he will not sanction further increases and that Democrats have the ability to go it alone.
“With a Democratic president, a Democratic House and a Democratic Senate, Democrats have all the tools they need to raise the debt ceiling,” the Kentucky senator tweeted Wednesday. âItâs their sole responsibility. Republicans will not facilitate another reckless, partisan tax and spending spree. “
President Joe Biden retorted that Republicans are to blame for the growing deficit and that his plans for child care, schooling, health care, infrastructure and climate change adaptation will be fully paid for at long term.
âLet me remind you that these are the same people who just four years ago adopted the Trump tax cut,â Biden said in remarks Thursday at the White House. “This has just inflated the federal deficit.”
With a total debt of $ 28.4 trillion, the government would be forced to cut programs dramatically unless restrictions on borrowing were lifted or suspended. The risk of a recession and turmoil in financial markets would make it more difficult for states and cities to borrow, while wreaking havoc on public investments in pension plans.