President Joe Biden stepped up his attack against Trump-supporting Republicans on Saturday for their intransigent stance on the country’s debt ceiling.
What Happened: Default is “not an option,” the president tweeted Saturday morning. Biden also went at length to explain the ill effects of a potential default. He noted that a default would lead to the erosion of “millions of jobs, trigger a recession, hit retirement accounts and increase borrowing costs.”
Sharing a graphic on Friday that read, “A first-ever default on our national debt is not an option,” Biden said he would be willing to work with House Republicans on budget and spending priorities but not under the threat of a default.
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“Under the MAGA House Republican wish list, 100,000 teachers and support staff would lose their jobs nationwide,” Biden tweeted. “At a time when the average student out there is about a year and a half behind.”
“We don’t need fewer teachers. We need more teachers,” he added.
Pitting himself against MAGA Republicans, the president also publicly weighed cutting Big Oil subsidies — which he said his budget would do — and cutting health care.
“Would we rather cut handouts to Big Pharma, or cut veterans’ services?” the president further asked. “These real-world choices are what’s at stake.”
Why It’s Important: A government default could occur as early as the first half of June if the issue is not resolved, a new report from Congressional Budget Office revealed on Friday.
Treasury Secretary Janet Yellen has signaled an economic catastrophe if Congress does not act.
“It’s certainly not a positive for relationships and standing in the world and credibility,” she told Reuters on the sidelines of a meeting of financial officials of G-7 nations on Saturday.