As the economic stability of the United States and global economy hang in balance, the U.S. Treasury Department has expressed major concern over reaching the government debt ceiling.
On Thursday, Jan. 19, the federal government hit its $31 trillion debt limit, causing the Treasury Department to take extreme accounting acts to keep the government financially stable. Of course, thanks to the wild, erroneous and irresponsible government spending coming from the past Democrat-majority 117th Congress, it is no surprise the country has found itself in this situation.
Realistically, since President Biden’s first day in office, his deplorable economic handling aided by the 117th Congress’ destructive government spending wholly formed and thrusted the financial calamity into the hands of the new 118th Congress.
Not just Democrats, but all politicians who voted for trillion dollar spending packages such as the Democrat-sponsored Inflation Reduction Act — which embarrassingly had zero impact on inflation — are at fault. Washington, D.C., threw money at problems, and when that proved useless, abandoned ship as a new captain took helm.
Quite conversely, U.S. Treasury Secretary Janet Yellen ignorantly projects the federal government’s debt ceiling catastrophe to only worsen if demands by House Republicans are allowed to pass. Secretary Yellen does think “Congress will ultimately vote to raise America’s debt limit, but demands by House Republicans for spending cuts in return for backing an increase are a ‘very irresponsible thing to do’ and risk creating a ‘self-imposed calamity’ for the global economy,” according to the Associated Press.
It seems in the eyes of most Democrats, including Secretary Yellen, the party acting irresponsibly is neither the one that was controlling Congress and federal finances for the last two years, nor the one currently overseeing the Treasury, but the one calling for spending cuts! How dare Republicans call for spending cuts after the previous Congress overspent the nation’s dollars!
To make matters worse, President Biden has called on Congress to increase the debt limit rather than fix the problem at its root: bad policy. Both Secretary Yellen and multiple Biden administration officials have expressed their desire for Congress and the White House to come to an agreement: “‘Congress needs to understand this is about paying bills that have already been incurred by decisions with this and past Congresses, and it’s not about new spending,” according to the Associated Press.
President Biden and Secretary Yellen are all of a sudden concerned about paying bills when the executive branch did nothing but ironically praise the 117th Congress’ legislative spending which led to the nation’s inability to pay its bills. It seems, even amongst the nation’s debt crisis, the political elite continue to find ways to mishandle taxpayer money and blame the innocent party for the act.
For the last two years, warning after warning has been issued to Washington, D.C., about its reckless spending and the disastrous events that could follow. Whilst the architects of the current debt crisis call upon Congress to worsen the problem by lazily raising the debt limit, those seeking to fix the problem via spending cuts are being labeled as the antagonizers.
All the while, America is left pondering if the federal government can dig itself out of the monetary hole its predecessors made through either simple ignorance or complex intentionality.