Biden says Republican debt plan would harm ‘millions of Americans’

US President Joe Bident on Tuesday warned that the Republican plan would return the country to “the same old trickle-down economic theories of the past.” (Reuters)
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Updated 19 April 2023
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Biden says Republican debt plan would harm ‘millions of Americans’

  • McCarthy earlier unveiled a plan supporting a legislation to raise the nation’s debt ceiling, if coupled with a cap on future federal spending

WASHINGTON: US President Joe Biden on Tuesday slammed a congressional Republican plan to limit federal spending in exchange for raising the nation’s borrowing limit, saying it would result in “huge cuts” to programs serving millions of Americans.

The top Republican in the US House of Representatives, Kevin McCarthy, officially unveiled specifics of the plan earlier in the day and urged members of his party to act in concert as they go head to head with the president.
The US hit its $31.4 trillion borrowing limit in January, prompting the Treasury to take “extraordinary measures” that allow it to continue financing the government’s activities.
But if the debt ceiling is not raised or suspended by Congress before current measures are exhausted, the US government risks defaulting on payment obligations as early as July, with profound implications for the economy.
House Republicans are vowing to only raise the debt ceiling if federal spending caps are implemented, in an attempt to curb what they say is “reckless” spending by Democrats.
McCarthy is urging a floor vote before the end of the month, posting on Twitter Tuesday that it was “time to stop the madness.”
“Democrats’ reckless spending caused inflation, a banking crisis, and so many other problems,” McCarthy wrote.
Biden, however, accused the Republican leader of proposing “huge cuts to important programs” that “millions of Americans count on,” and said their plan would return the country to “the same old trickle-down economic theories of the past.”
McCarthy’s proposal would, among other things, return federal government spending to 2022 levels and limit its growth to one percent per year over the next 10 years.
Democrats are strongly opposed to the Republican proposal, arguing that linking a debt ceiling increase to budget cuts amounts to blackmail.
McCarthy “threatened to become the first speaker to default on our national debt,” Biden said.
Senate Democratic leader Chuck Schumer said in a statement that no one “should confuse this wish-list as anything more than a recycling of the same bad ideas we’ve heard about for weeks.”
The US president has said repeatedly that he is ready to discuss spending reductions but that Congress must first pass a “clean” — no-strings-attached — debt ceiling increase before time runs out.
Biden spoke with Schumer and top House Democrat Hakeem Jeffries about the issue on Tuesday, with the White House saying afterward that they had discussed how Republican “brinkmanship” could “crash the economy.”
“President Biden, Leader Schumer and Leader Jeffries agree that we won’t negotiate over default,” the White House said.
“The President told Leader Schumer and Leader Jeffries that he was ready to have a separate negotiation over the budget once Republicans present their plan.”
McCarthy and Biden met in early February to discuss possible outcomes, but were unable to reach a compromise.
McCarthy must additionally overcome dissension in his own Republican ranks between his party’s right wing and its more moderate lawmakers, to ensure the bill’s passage in the House.
 


US Catholic cardinals urge Trump administration to embrace a moral compass in foreign policy

(From L): Cardinal Blase Cupich, cardinal Robert McElroy and cardinal Joseph Tobin. (AP file photo)
Updated 6 sec ago
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US Catholic cardinals urge Trump administration to embrace a moral compass in foreign policy

  • The three cardinals, who are prominent figures in the more progressive wing of the US church, took as a starting point a major foreign policy address that Pope Leo XIV delivered Jan. 9 to ambassadors accredited to the Holy See

ROME: Three US Catholic cardinals urged the Trump administration on Monday to use a moral compass in pursuing its foreign policy, saying US military action in Venezuela, threats of acquiring Greenland and cuts in foreign aid risk bringing vast suffering instead of promoting peace.
In a joint statement, Cardinals Blase Cupich of Chicago, Robert McElroy of Washington and Joseph Tobin of Newark, N.J., warned that without a moral vision, the current debate over Washington’s foreign policy was mired in “polarization, partisanship, and narrow economic and social interests.”
“Most of the United States and the world are adrift morally in terms of foreign policy,” McElroy told The Associated Press. “I still believe the United States has a tremendous impact upon the world.”
The statement was unusual and marked the second time in as many months that members of the US Catholic hierarchy have asserted their voice against a Trump administration many believe isn’t upholding the basic tenets of human dignity. In November, the entire US conference of Catholic bishops condemned the administration’s mass deportation of migrants and “vilification” of them in the public discourse.
The three cardinals, who are prominent figures in the more progressive wing of the US church, took as a starting point a major foreign policy address that Pope Leo XIV delivered Jan. 9 to ambassadors accredited to the Holy See.
The speech, delivered almost entirely in English, amounted to Leo’s most substantial critique of US foreign policy. History’s first US-born pope denounced how nations were using force to assert their dominion worldwide, “completely undermining” peace and the post-World War II international legal order.
Leo didn’t name individual countries, but his speech came against the backdrop of the then-recent US military operation in Venezuela to remove Nicolás Maduro from power, US threats to take Greenland as well as Russia’s ongoing war in Ukraine.
The US Conference of Catholic Bishops was consulted on the statement, and its president, Archbishop Paul Coakley, “supports the emphasis placed by the cardinals on Pope Leo’s teaching in these times,” said spokesperson Chieko Noguchi.
The White House didn’t immediately respond to the AP’s request for comment on Monday.
Cardinals question the use of force
The three cardinals cited Venezuela, Greenland and Ukraine in their statement — saying they “raised basic questions about the use of military force and the meaning of peace” — as well as the cuts to foreign aid that US President Donald Trump’s administration initiated last year.
“Our country’s moral role in confronting evil around the world, sustaining the right to life and human dignity, and supporting religious liberty are all under examination,” they warned.
“We renounce war as an instrument for narrow national interests and proclaim that military action must be seen only as a last resort in extreme situations, not a normal instrument of national policy,” they wrote. “We seek a foreign policy that respects and advances the right to human life, religious liberty, and the enhancement of human dignity throughout the world, especially through economic assistance.”
Tobin described the moral compass the cardinals wish the US would use globally.
“It can’t be that my prosperity is predicated on inhuman treatment of others,” he told the AP. “The real argument isn’t just my right or individual rights, but what is the common good.”
Cardinals expand on their statement in interviews with AP
In interviews, Cupich and McElroy said the signatories were inspired to issue a statement after hearing from several fellow cardinals during a Jan. 7-8 meeting at the Vatican. These other cardinals expressed alarm about the US action in Venezuela, its cuts in foreign aid and its threats to acquire Greenland, Cupich said.
A day later, Leo’s nearly 45-minute-long speech to the diplomatic corps gave the Americans the language they needed, allowing them to “piggyback on” the pope’s words, Cupich said.
Cupich acknowledged that Maduro’s prosecution could be seen positively, but not the way it was done via a US military incursion into a sovereign country.
“When we go ahead and do it in such a way that is portrayed as saying, ‘Because we can do it, we’re going to do it, that might makes right’ — that’s a troublesome development,” he said. “There’s the rule of law that should be followed.”
Trump has insisted that capturing Maduro was legal. On Greenland, Trump has argued repeatedly that the US needs control of the resource-rich island, a semiautonomous region of NATO ally Denmark. for its national security.
The Trump administration last year significantly gutted the US Agency for International Development, saying its projects advance a liberal agenda and were a waste of money.
Tobin, who ministered in more than 70 countries as a Redemptorist priest and the order’s superior general, lamented the retreat in USAID assistance, saying US philanthropy makes a big difference in everything from hunger to health.
The three cardinals said their key aim wasn’t to criticize the administration, but rather to encourage the US to regain is moral standing in the world by pursuing a foreign policy that is ethically guided and seeks the common good.
“We’re not endorsing a political party or a political movement,” Tobin said. The faithful in the pews and all people of good will have a role to play, he said.
“They can make an argument of basic human decency,” he said.