Wednesday, May 03, 2023

Strategic Choices in Response to a Collapsing Debt Ceiling: A Chart

Joseph Fishkin

We are now careening toward default. House Republicans have voted through a plan that involves President Biden and the Democrats agreeing to undo more or less their entire domestic agenda, in return for the Republicans giving up the debt ceiling hostage for just a year (at which point they openly plan to take the hostage again!). A compromise with that starting point seems unlikely. But let's suppose that somehow a budget deal acceptable to both Biden and McCarthy will be reached. The problem is that even if that happens, it is almost certainly going to take longer than Janet Yellen says we have on the debt ceiling.

So it is time for everyone in the political class to focus on the following question: What should the administration do when so-called “extraordinary measures” run out? Gerard Magliocca on this blog has laid out the correct answers. So today what I am going to do is put the correct answers in chart/listicle form. The best answer can be found in column five. You’re welcome.

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