US President-elect Donald Trump on Monday criticised the extension of the 2023 debt ceiling deal, saying it will “go down as one of the dumbest political decisions made in years.” The agreement, reached by President Joe Biden and then-House Speaker Kevin McCarthy, suspends the debt limit until January 1, 2025.
Trump argued that the decision to postpone addressing the debt ceiling was a mistake. He believes the issue should be handled now, under the Biden administration.
Sharing his thoughts on the ‘Truth Social’ platform, Trump criticised the move for lacking any tangible gains and attributed it as a reason for the loss of the Speakership.
“The extension of the Debt Ceiling by a previous Speaker of the House, a good man and a friend of mine, from this past September of the Biden Administration, to June of the Trump Administration, will go down as one of the dumbest political decisions made in years. There was no reason to do it – NOTHING WAS GAINED, and we got nothing for it – A major reason why that Speakership was lost,” Trump said.
The president-elect also suggested that the Democrats would rather see a depression if it harmed the Republican Party, asserting that the responsibility for addressing the debt ceiling should rest with the Biden administration.
“It was Biden’s problem, not ours. Now it becomes ours. I call it ‘1929’ because the Democrats don’t care what our Country may be forced into. In fact, they would prefer ‘Depression’ as long as it hurt the Republican Party. The Democrats must be forced to take a vote on this treacherous issue NOW, during the Biden Administration, and not in June. They should be blamed for this potential disaster, not the Republicans!” he said.
Although the current deal allows the Treasury to pay its bills for several more months, Congress will have to revisit the debt ceiling in 2024.
What is the debt ceiling?
The debt ceiling is the limit that dictates how much money the US Treasury Department can borrow to fulfill the country’s financial obligations. Congress must raise or suspend this limit to allow the government to continue borrowing.
The current federal debt is approximately $36 trillion. Increased borrowing costs due to post-pandemic inflation mean debt payments in the coming year will surpass national security spending.
In June 2023, Congress opted to suspend the debt ceiling rather than raise it by a fixed amount. This suspension lasts until January 1, 2025. On that date, the debt ceiling will automatically adjust to equal the total debt issued by the Treasury up to that point.
Historically, the debt ceiling vote has become a political tool, providing leverage for attaching unrelated policy priorities to this essential legislation.
Fight on the debt ceiling
Trump has linked the debt ceiling issue to government funding. He insists both must be addressed together. He has rejected a spending proposal, demanding a debt ceiling resolution before the next president takes office. He warned that Republicans supporting any bill that doesn’t address the debt ceiling will face challenges.
“Anybody that supports a bill that doesn’t take care of the Democrat quicksand known as the debt ceiling should be primaried and disposed of as quickly as possible,” Trump told Fox News Digital.
#Trump #slams #Bidens #Debt #Ceiling #Deal #Dumbest #political #decisions #calls #GOP #unity #Times #India
