US President Joe Biden on Tuesday urged Congress to pass a debt ceiling deal, warning that the country is facing a “serious economic crisis” if the government is forced to default on its debt.
“The debt limit is not a partisan issue,” Biden said in a speech from the White House. “It’s a matter of common sense.”
The debt ceiling is the maximum amount of money that the federal government is allowed to borrow. The current debt ceiling is $31.4 trillion. If the government reaches the debt ceiling, it will be unable to borrow any more money and will be forced to default on its debt.
A default on the US debt would have a devastating impact on the economy. It would lead to a sharp increase in interest rates, which would make it more expensive for businesses to borrow money and invest. It would also lead to a decline in the value of the dollar, which would make it more expensive for Americans to buy imported goods.
“A default would be a self-inflicted wound,” Biden said. “It would be a disaster for our economy.”
Biden urged Congress to pass a debt ceiling deal by the end of the week. If Congress fails to act, the government will reach the debt ceiling on August 1.
“We cannot afford to wait any longer,” Biden said. “We need to act now.”
The debt ceiling has been a source of political gridlock in recent years. Republicans have repeatedly refused to raise the debt ceiling, arguing that it is a way to force Democrats to make spending cuts.
Biden has called on Republicans to act responsibly and to raise the debt ceiling without attaching any strings.
“The American people are counting on us to do our jobs,” Biden said. “We cannot let them down.”
The debt ceiling is a complex issue, but it is one that is essential to the functioning of the US government. A default on the US debt would have a devastating impact on the economy, and it is something that must be avoided at all costs.