The Market Institute President Charles Sauer has a new article in the Washington Examiner’s Restoring America series on the quickly approaching “X-Day” for a United States government default.
He argues for a resolution to this impending crisis with both sides playing a crucial role.
President Joe Biden and the Democratic party should engage with the Republican proposal to address the debt limit instead of dismissing it entirely. The Republican proposal suggests a “two-step” approach, which would involve suspending the debt limit through December 2022, followed by a debt limit increase in early 2023. This approach would allow Congress to address spending priorities and entitlement reform.
A two-step approach is a reasonable compromise that Democrats should consider, as it would provide immediate relief to avoid a government shutdown and default on the nation’s debt obligations. Sauer suggests that a fair negotiation process, which respects the opinions of both parties, is necessary to avoid a repeat of the 2011 debt ceiling crisis. Ultimately, the article argues that finding a reasonable compromise to address the debt limit is in the best interest of both parties, and it would help prevent unnecessary economic turmoil.