So that the fearful paralysis of the US government does not occur next summer, due to a lack of resources, Democratic President Joe Biden must convince the opposition to approve his project to raise the debt ceiling.
Republican congressional spokesman Kevin McCarthy opened the door to dialogue, but with conditions. This Wednesday, April 19th He proposed increasing the share of the debt by $1.5 trillion from the current $31.4 trillion for 2023, provided expenditures are cut.
Addressing the full House of Representatives, McCarthy said: “We will responsibly raise the debt limit over the next year and provide more than $4.5 trillion in savings for American taxpayers.”
“This is how we do it: First, we reduce government spending. Our plan will bring discretionary spending back to levelsbefore fiscal 2022 and thereafter will limit spending growth to 1% per annum.”
The Biden government criticizes the initiative
The introduction of the project, which is taking place as the 2024 presidential campaign heats up, has drawn controversy and criticism from the Democratic government, led by President Biden himself.
McCarthy’s proposal, unveiled on the House floor Wednesday, would reduce the total amount of household and military spending to 2022 levels and leave out pension and healthcare programs expected to expand dramatically as the population ages.
The Republican plan would also eliminate green energy incentives that Biden signed last year, boost domestic oil and gas production and eliminate his $400 billion effort to forgive student loans.
From a union training center in Accokek, Maryland, White House chief dismissed Kevin McCarthy’s plan, saying Republicans threaten all the things they “helped him do.”
If the debt ceiling is not raised, a default will begin in the summer that will shake the economies of the United States and the world.
With Reuters and EFE