President Biden Warns of Catastrophic Impacts on Jobs and Economy if Debt Ceiling Not Lifted

President Biden Warns of Catastrophic Impacts on Jobs and Economy if Debt Ceiling Not Lifted

President Joe Biden has praised the strong jobs report released on Friday which showed nonfarm payrolls increased by 253,000 for the month, beating Wall Street estimates of 180,000, and putting the unemployment rate at 3.4%. However, the President has warned that the low unemployment rate could disappear if House Republicans do not increase the debt ceiling soon.

During a White House press conference, President Biden stated that the last thing the country needs after all they have been through is a “manufactured crisis”. The President accused MAGA Republicans in Congress of driving the manufactured crisis and warned of the catastrophic impacts that could occur if the debt ceiling is not lifted.

Congressional Stalemate on Debt Ceiling and Spending Cuts

Lifting the debt ceiling is necessary for the government to cover existing spending commitments that have already been approved by Congress and the President. However, House Republicans have said they will not authorize a lift if future spending cuts are not agreed to. The White House has said it is open to discussing spending cuts but will not negotiate with Republicans on the debt ceiling, and lifting it is their constitutional responsibility.

President Biden emphasized that lifting the debt ceiling and agreeing to spending cuts are two separate issues. He warned that Republicans are trying to hold the debt hostage to force them to agree to “draconian cuts” that could be magnificently difficult and damaging. The President cited a recent Moody’s report which showed 780,000 people could lose their jobs if the country were to default on its debt.

Possible Impacts on America’s Standing in the World

President Biden warned that the standoff over the debt ceiling could have a damaging impact on America’s standing in the world. He stated that America is “not a deadbeat nation” and that the standoff “is becoming an issue in other countries” who worry the U.S. will default.

The President will meet with the four top congressional party leaders at the White House next week to try to reach a deal. He hopes that Republicans will agree to have “normal arguments” instead of ultimatums when they meet. President Biden emphasized that while they can debate where to cut and how much to spend, they should not do so under the threat of default.


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