There are contradicting opinion pieces on the debt limit in the Wall Street Journal today. William Galston says that the House should relent:
F. Scott Fitzgerald once wrote that “the test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time and still retain the ability to function.†The challenge for Congress and the president is to meet this test. On one hand, the likely consequences of default are unacceptable. On the other, our long-term fiscal trajectory isn’t sustainable. Our political leaders must find a way of reconciling these truths to reach a practical result.
Like many observers, I believe that the disagreements between the parties are too deep to resolve between now and June. I hope that party leaders can agree to suspend (not increase) the debt ceiling until Sept. 30, allowing discussions of the debt ceiling and the budget to proceed simultaneously. Mr. Biden has said that he is willing to discuss fiscal policy as part of the budget negotiations, but only separately from debt-ceiling talks. Republicans should care more about the substance of budget cuts than about the legislative context in which they occur.
Long-term budget talks need a goal that is both feasible and meaningful. A balanced budget would require spending cuts and tax increases that neither Congress nor the American people would accept. A more practical target is to reduce the annual deficit enough so that U.S. debt grows no faster than the U.S. economy.
while James Freeman says that’s absurd:
Those not accustomed to studying the absurdities of Washington may wonder why Biden administration staff are discussing increasingly kooky ways to evade federal law rather than simply accepting the constitutional reality that Congress has a say in federal spending and debt decisions. Perhaps due to Mr. Biden’s career as a political posturer, he doesn’t even appear to be embarrassed as he pretends that he’s standing on principle in rejecting negotiation to secure more borrowing authority. Naturally our posturer-in-chief had the opposite position as a senator and as vice president, when he served as a negotiator.
Now, apparently disappointed that he didn’t cut a better deal on behalf of President Obama in 2011, Mr. Biden suddenly pretends that negotiation is unnecessary and the White House can simply order Congress to pass a higher debt limit.
Yet much of the press portrays Mr. Biden as someone who is trying to solve a problem. “Biden meets with congressional leaders in urgent bid to avoid default,†claims a Washington Post headline. But his bid is obviously not urgent if he’s still unwilling to negotiate on the subject.
Tyler Pager and Jeff Stein report for the Post:
The White House in recent days has emphasized that Biden is willing to discuss spending cuts as long as they are not tied to the debt ceiling increase, a message he is expected to repeat at Tuesday’s meeting.
So he’s conceded that a president must negotiate such things with Congress, except at the moment when negotiations are most needed? This is absurd. But it won’t be funny if the government can’t pay its bills.
As a matter of policy I’m more predisposed to agree with Mr. Galston’s view but for one detail: President Biden poisoned the well when he reneged on his commitments to Sen. Manchin in the Inflation Reduction Act. At this point it is not unreasonable to conclude that President Biden will honor no commitments on spending cuts unless forced on him.
Thirty years ago as the Cold War ended and people were talking about the “peace dividend” I observed that it would be fun while it lasted but it wouldn’t last. The same was true of the COVID-19 spending spree.
There is obviously a desperate need for us to align federal spending with the growth of the economy. Everything that we know tells us that the higher the debt overhang the greater the impediment to economic growth. China is experiencing that as well.
The question is how to accomplish it. It won’t be easy with one party that believes every dollar spent by the federal government stimulates the economy while the other party believes that every dollar by which taxes are reduced does the same. Two one-trick ponies together do not make for a competent team.