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Why Isn't Congress Moving Legislation During the Lame Duck Session to Fix the Debt Limit Issue

zincwarrior

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First time posting a thread. Apologies if something is in error.

During the Lame Duck session, while the Democrats are still in power, why aren't they moving legislation to Eliminate the Debt Cap requirement via eliminating the cap, raising it to a level that is not an issue for several years, or giving the power the the Secretary of Treasury.

President Joe Biden on Friday rejected a push from congressional Democrats to get rid of the statutory debt ceiling, calling the idea of doing so “irresponsible.”

Biden’s statement comes as Democrats are bracing for a showdown expected late next year with Republicans over the federal borrowing limit deadline. Republicans see this negotiation as an opportunity to push for their policy goals if they win the majority in the House, and some Democrats want the party to take action during the lame duck session to avoid this scenario.

A group of House Democrats led by Pennsylvania Rep. Brendan F. Boyle have drafted a letter to Speaker Nancy Pelosi and Senate Majority Leader Charles E. Schumer urging passage of a “permanent solution” to the debt limit during the upcoming lame duck session.

“The only hope of avoiding these potential repercussions is for us to implement a solution more permanent and reliable than the current practice of hastily taking action each time we approach the dollar amount of the debt limit or the expiration of an enacted suspension,” Boyle wrote.

Boyle suggested his legislation authorizing the Treasury Secretary to raise the debt limit unilaterally or to repeal the federal debt limit altogether. The first proposal, co-sponsored by House Budget Chair John Yarmuth, D-Ky., among others, has more support than the second, though Majority Whip James E. Clyburn, D-S.C., is a notable supporter of Boyle's debt ceiling repeal bill.

Here is a nice article on what could be done:
 
First time posting a thread. Apologies if something is in error.

During the Lame Duck session, while the Democrats are still in power, why aren't they moving legislation to Eliminate the Debt Cap requirement via eliminating the cap, raising it to a level that is not an issue for several years, or giving the power the the Secretary of Treasury.



Here is a nice article on what could be done:
They won't deal with the debt cap because they may need to use it as an issue in the future.

This is the same reason neither party will deal with important issues...the Dreamers, border security, illegal immigration, the nuclear option...the list goes on.
 
Neither is ‘business as usual’. Turning the ‘debt ceiling’ into the ‘debt floor’ (or simply ignoring it) isn’t a great idea.

Not sure destroying the Dollar is preferable. I get that there are people who simply loathe this nation and want to watch it burn but I am opposed to that.
 
That is controlled through the spending bills and normal budgeting.
We don’t have a normal budgeting process anymore. Pretty much everything is done with continuing resolutions and spending bills. The debt ceiling is just another item each party uses to bash the other party over the head.
 
First time posting a thread. Apologies if something is in error.

During the Lame Duck session, while the Democrats are still in power, why aren't they moving legislation to Eliminate the Debt Cap requirement via eliminating the cap, raising it to a level that is not an issue for several years, or giving the power the the Secretary of Treasury.



Here is a nice article on what could be done:
Because being in the "lame duck" session doesn't mean the filibuster stopped existing.

Say thanks again to our republican senators for being obstinate bastards.
 
Neither is ‘business as usual’. Turning the ‘debt ceiling’ into the ‘debt floor’ (or simply ignoring it) isn’t a great idea.
You grow your way out of debt... never has there been a time where debt and deficits have been tackled simply by reducing government spending.
 
Biden is still parroting the neoliberal austerity myths.
 
Biden is still parroting the neoliberal austerity myths.

I look back over the last 15 years, and I see big spending in response to the Financial crisis... big spending in response to Covid.... and now - at least in part - because of all that stimulus, we've got inflation rearing up and driving up interest rates.

Isn't the appropriate response at this point in time a little belt-tightening?
 
I look back over the last 15 years, and I see big spending in response to the Financial crisis... big spending in response to Covid.... and now - at least in part - because of all that stimulus, we've got inflation rearing up and driving up interest rates.

Isn't the appropriate response at this point in time a little belt-tightening?
This inflationary period is not about money supply. Money supply has been shrinking, domestically and globally. This was already true last summer, before Powell took a chainsaw to balance sheets.

Further shrinking it won't stop pandemic/supply chain caused inflation.
 
I look back over the last 15 years, and I see big spending in response to the Financial crisis... big spending in response to Covid.... and now - at least in part - because of all that stimulus, we've got inflation rearing up and driving up interest rates.

Isn't the appropriate response at this point in time a little belt-tightening?
I think the inflation is actually supply chain caused this time. The rising interest rates at the fed should help alleviate but the rising gas prices are happening despite increased profits. Not much that can be done about that with existing tools.

Depends on where you cut as several departments have been cut to bare bones already.
 
I look back over the last 15 years, and I see big spending in response to the Financial crisis... big spending in response to Covid.... and now - at least in part - because of all that stimulus, we've got inflation rearing up and driving up interest rates.

Isn't the appropriate response at this point in time a little belt-tightening?
Belt tightening per the normal budget bill yes. Belt tightening that threatens government shutdowns and the credit of the US? No way.
 
This inflationary period is not about money supply. Money supply has been shrinking, domestically and globally. This was already true last summer, before Powell took a chainsaw to balance sheets.

Further shrinking it won't stop pandemic/supply chain caused inflation.
Oh... given enough time it will by inducing an economic downturn. Fortunately, there is still a considerable amount of fiscal stimulus in the pipeline, so even if we go into a recession it's going to be extremely short lived.
 
Oh... given enough time it will by inducing an economic downturn. Fortunately, there is still a considerable amount of fiscal stimulus in the pipeline, so even if we go into a recession it's going to be extremely short lived.
Not sure though that there is fiscal stimulus in the pipeline. I think most of that has been spent. But I think recession is in the future.
I disagreed with interest rate hikes. The inflation doesn;t have to do with people borrowing money they shouldn;t. It has to do now mostly with supply chain issues with steady demand.
However, those higher interest rates are going to take money out of the economy for the next 5 to 30 years as americans pay higher interest on their credit.. from cars to mortgages.
 
Not sure though that there is fiscal stimulus in the pipeline. I think most of that has been spent.
The fiscal deficit is still something like $1.3 trillion, as stimulus isn't predicated on a label from Congress.
 
The fiscal deficit is still something like $1.3 trillion, as stimulus isn't predicated on a label from Congress.
Well.. I give you that but I see a difference between stimulus checks.. which are injections into the economy simply for the economy.
And things like an infrastructure law that will rebuild vast sections of roads, bridges etc, invest in alternative energy infrastructure etc, access to internet. I see that as paying bigger dividends as an longer term investment that will bring in more taxes from increased economic output than is initially spent.
 
Well.. I give you that but I see a difference between stimulus checks.. which are injections into the economy simply for the economy.
And things like an infrastructure law that will rebuild vast sections of roads, bridges etc, invest in alternative energy infrastructure etc, access to internet. I see that as paying bigger dividends as an longer term investment that will bring in more taxes from increased economic output than is initially spent.
Giving money away is always a gamble, especially in an indebted society. Free money worked in 2020 / 2021 because people were locked down and savings was at an all-time high. However, consumer preference has changed considerably as there has been a heightened demand in durable goods consumption. We are beginning to see this trend revert in the form of diminishing marginal returns and higher prices. Two years ago, you couldn't get a GPU unless you were willing to pay 3x MSRP or were extremely lucky. If you wanted a new car... good luck paying 25% over sticker if you could even find the one you hoping for. That new bathroom or kitchen was going to take a while if you could even source the materials. Now you can have all of these things without much hassle, markup, or ridiculous wait.

It's for the best. The U.S. economy shouldn't be growing in double digits on the back of a splurge in consumption.
 
Personally i would just get rid of the debt ceiling. Its been a piss poor method of controlling spending anyway and we are a sovereign currency issuer so there is really no debt limit.
 
Giving money away is always a gamble, especially in an indebted society. Free money worked in 2020 / 2021 because people were locked down and savings was at an all-time high. However, consumer preference has changed considerably as there has been a heightened demand in durable goods consumption. We are beginning to see this trend revert in the form of diminishing marginal returns and higher prices. Two years ago, you couldn't get a GPU unless you were willing to pay 3x MSRP or were extremely lucky. If you wanted a new car... good luck paying 25% over sticker if you could even find the one you hoping for. That new bathroom or kitchen was going to take a while if you could even source the materials. Now you can have all of these things without much hassle, markup, or ridiculous wait.

It's for the best. The U.S. economy shouldn't be growing in double digits on the back of a splurge in consumption.
Yeah.. we needed the money injection in 2020/21 because of the pandemic, lockdowns. etc. And probably though that money should not have been given so liberally. Frankly,, people like my parents on their fixed incomes, didn;t see a decline in income, so they simply put the stimulus money away (hence savings rate hike) and then spent it as the pandemic and the risks of infection declined and then felt safe getting out and shopping.
I bought a new car in 22 and I was lucky to pay 1000 below sticker. Most sales were 10 to 25% over MSRP. And I still waited 4 months to get it.
that new bathroom or kitchen is still taking months to get someone to do it. Anything that requires labor is taking longer as we have had a radical change in the workforce.
A lot of part time and full time older people, and working parents in my opinion have reevaluated whether working is beneficial or they would rather stay home. And this has led to the labor crunch and supply issues.
 
First time posting a thread. Apologies if something is in error.

During the Lame Duck session, while the Democrats are still in power, why aren't they moving legislation to Eliminate the Debt Cap requirement via eliminating the cap, raising it to a level that is not an issue for several years, or giving the power the the Secretary of Treasury.



Here is a nice article on what could be done:
As near as I can tell there is nothing on board for the lame duck and plenty of things they could work on. Keeping my fingers crossed and looking forward to younger leadership in the Senate as well.
 
First time posting a thread. Apologies if something is in error.

During the Lame Duck session, while the Democrats are still in power, why aren't they moving legislation to Eliminate the Debt Cap requirement via eliminating the cap, raising it to a level that is not an issue for several years, or giving the power the the Secretary of Treasury.



Here is a nice article on what could be done:
That issue will get resolved. May as well do something that only democrats are for while there is still an opening.
 
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