Post Date: May 5, 2023

The partisan fight in Congress over how to raise the nation’s debt ceiling to prevent a default has accelerated, as the U.S. Treasury predicted the borrowing limit could be reached as soon as June 1, 2023. It is unclear how, or if, lawmakers can resolve their differences over the budget before the nation defaults on its debts.

The problems and issues rest largely on the shoulders of the Republicans. The GOP wants to bargain with considering large cuts to federal spending programs, such as Medicare/Medicaid and Social Security, which President Biden says these cuts are definitely off the table. Also, major health programs are at extreme risk as well.

The number of deaths from covid-19 continues to dwindle. The public health emergency expires next week, and mask mandates are being dropped by health care facilities. There continue to be issues tallying cases and guiding prevention efforts. What’s clear is the coronavirus is not now and may never be gone, but things are getting better from a public health standpoint. That being said, a provision for this is a must discussion for future consideration. There are many programs to consider, but another major program on the table is paid leave and a few other government interventions.

Bottom line: If the debt ceiling binds and the U.S. Treasury does not have the ability to pay its obligations, the negative economic effects would quickly mount and risk triggering a deep recession. The economic effects of such an unprecedented event would surely be profoundly negative.

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