President Joe Biden’s administration and its Republican opponents in the House of Representatives are stuck in another debt-ceiling impasse. To avoid the calamity of an outright default, this reckless ritual usually demands a last-minute deal or capitulation. This time, taking such a benign outcome for granted might be a mistake — and the buck will stop with the president, whether he recognizes it or not.
So far, neither side looks interested in shaping an agreement that the other could conceivably accept. The administration is flatly refusing to negotiate, insisting on an increase in the debt ceiling with no strings attached. Republicans led by Speaker Kevin McCarthy have at least made a proposal — across-the-board cuts in discretionary spending. They know Biden will reject it, and don’t much care. The one thing both sides agree on seals this contract of mutually assured paralysis: Social Security and Medicare (both rapidly approaching technical insolvency) can’t be touched.
This latest stand-off is especially dangerous because both sides think the other will get the blame if a default actually happens. The U.S. wrecks its standing in global capital markets, the economy pays an enormous price, and it’s a win for our team, the thinking goes. It’s as cynical as it sounds.
