Biden Signs Fiscal Responsibility Act in End to Debt Limit Crisis
New York TimesJun 03, 2023
The Facts
On Saturday, US Pres. Joe Biden signed a bill that suspends Washington's $31.4T debt limit until 2025 ahead of a June 5 deadline set by the Treasury to avert a destabilizing default.
Sharing a video of him signing the bill, Biden posted on Twitter: "I just signed into law a bipartisan budget agreement that prevents a first-ever default while reducing the deficit, safeguarding Social Security, Medicare, and Medicaid, and fulfilling our sacred obligation to our veterans."
The Spin
Democratic narrative
Regardless of its terms, by signing the debt ceiling bill into law, Biden just saved the nation from imminent economic collapse, prevented economic instability worldwide, and averted running out of money to pay its obligations for two years — all while prevailing in this game of chicken and keeping his agenda on track.
Republican narrative
Republicans have saved the country from the scourge of default. Had conservatives not fought for Americans' future, the Washington uni party cartel would've gotten everything it wanted at the cost of the country. Although the US will continue to spend more than it receives, McCarthy has produced a compromise closer to the GOP's vision than the Democrats'.
Narrative C
Both sides will continue to have questions over the quality of the deal for weeks and months, but there was no more time for negotiations and concessions. Regardless of whether it’s a good deal or a bad one, it was necessary to prevent worldwide economic chaos.
Nerd narrative
There's a 50% chance that the US national debt will reach $50T by May 19, 2030, according to the Metaculus prediction community.
