(Republicaninformer.com)- According to a report, House Speaker Kevin McCarthy explained the reality to a Washington, DC., reporter after being asked whether the US would stop making payments on its debt.
The query was raised following McCarthy’s meeting at the White House with President Joe Biden, which was his first as Speaker.
McCarthy said the one-on-one conversation lasted an hour and was a good first meeting, but no agreements or promises were made.
As the federal national debt ceiling approaches in the coming months, a reporter asked McCarthy if he could ensure that the U.S. will not default on its obligations.
According to the report, the reporter implied that Biden is acting responsibly, while Republicans hoped to destroy the economy. McCarthy used an analogy to address the question.
McCarthy explained that if you give your child a credit card and they spend the limit, you are responsible for paying credit card debt. The responsible course of action is to look at how you’re spending rather than simply raising the limit. If you reach the credit card’s limit because your expenses exceed your income, you must increase revenue, decrease expenses, or do both to get your finances in order.
McCarthy stated that if current trends continue, we will spend $8 trillion on interest over the next ten years. The interest on your debt is enough to push you into bankruptcy. Our debt is America’s biggest threat.
The Speaker noted that with 120 percent of GDP, our debt had surpassed the size of our economy.
During the State of the Union address, President Joe Biden asserted that he cut the deficit by more than $1.7 trillion over the last two years.
CNN reports that when Biden asserts that his administration is cutting the deficit, he misrepresents the truth.
When Vice President Joe Biden took office, the deficit was lower than it was at the conclusion of President Donald Trump’s term. But the deficit under the Biden administration has been higher than what the Congressional Budget Office, a nonpartisan federal agency, had predicted it would be if the Biden-era federal government maintained the laws in place when Trump left office in early 2021.