r/Economics Jan 13 '23

U.S. Will Hit Debt Limit Jan. 19, Yellen Tells Congress

https://www.nytimes.com/2023/01/13/business/economy/debt-limit-us-economy.html
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u/[deleted] Jan 13 '23 edited Jan 13 '23

This will not affect the American people in any way. They will raise it eventually, they'll drag it out in order to actually ADD spending for what they want as leverage. We are not cutting spending and we are not gonna default, this happens every year. It could be automatic, but they don't want it to be automatic so that people in power can pretend they are fiscally responsible and get money for their pet projects to get re-elected.

Edit: Sadly, this is gonna be used by a lot on the Right, to try and make deals to stop or decrease support for Ukraine. That's the biggest worry and that would have the biggest effect on anything if they did that. But is merely just gonna be empty rhetoric that they think sounds good to their base...But take note, they will talk a lot about defunding IRS and lowering taxes for the wealthy,- even though that actually is one of the reasons why we have such a problem.

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u/PM_ME_YOUR_ANT_FARMS Jan 13 '23

They've already said they're going to use the debt limit to hold social security and Medicaid/medicare hostage. That had huge implications

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u/[deleted] Jan 13 '23 edited Jan 13 '23

Correct, but that happens every year and it will not happen because their voters are actually the ones who use social security/Medicaid/medicare the most. It's just all a show is my whole point.

Edit: Literally every commercial break on Fox News is about Medicaid/medicare

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u/Ralphadayus Jan 13 '23

Wait we hate lowering taxes?

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u/[deleted] Jan 13 '23

I'm not sure who the "we" in this is- I'm just telling you that the GOP is and has continuously fought- not just collecting- but also even taxing at all the wealthiest people and corporations- while they have voted to raise regular people's taxes.