On the evening of June 2, US President Joe Biden addressed American citizens for the first time directly from the White House Study, Oval Office – reported among others, hv news.
In a 12-minute speech broadcast live by most news channels during prime time, Joe Biden gave his opinion at length about the debt ceiling suspension recently adopted by Congress.
According to the president, it was not possible to fulfill all the wishes of all parties to the deal, but in cooperation with the two parties, they avoided the worst scenario, which is the state’s technical bankruptcy, the effects of which will not only be bad. It affected the lives of Americans and the country’s economy.
According to him, this could not have been achieved without bipartisanship, and at the beginning of his speech he repeatedly touched on why he believed it was important for America’s two major parties to cooperate on important issues.
I know bipartisanship is hard, as is creating unity, but we can never give up. Because at such moments, when the American economy and the world economy are in danger of collapse, there is no other way, no matter how difficult our political situation, that we should look upon each other not as enemies, but as fellow Americans.
– said the president, recalling his inaugural speech, and added that Americans should stop yelling at each other, calm their nerves, and work together for the development of the country.
He also diplomatically praised the work of Republican President Kevin McCarthy and his team, as well as the White House negotiators. As he said, everyone acted responsibly and, instead of political interest, looked for the country’s interest during the trial.
Biden’s cabinet gets some air
On Saturday, Biden will sign the bill passed this week in the House and then the Senate, which suspends use of the debt ceiling through January 2025 along with broad spending cuts, giving the president, the Democratic Party, and the Republican Party some breathing room.
As we explained in our explainer article on this matter,
The decision essentially delayed the agreement on the debt ceiling, as it technically had not been raised, it was merely suspended.
It is true that when the suspension expires in January 2025, it will be withdrawn at the specified level.
This allows the Biden administration to breathe, despite the fact that the budgets of many important political programs for the Democrats and the president have been cut for the sake of the deal, and in addition, federal government spending will be fundamentally reduced in the coming days. Two years: In 2024, it could spend 1 percent more in 2023 than state, which means that with the current inflation rate of 4.93 percent, less money could be spent on federal programs in the future.
In addition to avoiding technical bankruptcy by suspending the debt ceiling, both sides can hope that divided government ends after the 2024 election, making it easier to raise the ceiling, which is not used in many countries outside the United States, for a longer period of time.
We wrote more about how the parties reached an agreement and what they agreed to in this article, while the political battles surrounding the debt ceiling and the debt ceiling itself are explained in detail in the article below.
