The Patriot Post® · In Brief: Chuck Schumer's Debt Default

The U.S. hit the statutory debt ceiling in January, but the Treasury Department has used “extraordinary measures” to keep the lights on while Congress and the president hammer out an agreement to raise the ceiling for the umpteenth time in the last decade. House Speaker Kevin McCarthy and his fellow Republicans did their job last month. Only after Treasury Secretary Janet Yellen scolded Congress did Joe Biden get up from a nap to invite McCarthy to the White House. Next week.

In any case, the editors of the Wall Street Journal say a lot of the blame lies with Senate Majority Leader Chuck Schumer.

House Republicans last week passed a bill that would raise the debt ceiling by $1.5 trillion into 2024 with some modest spending restraint, and in the American system it takes two legislative bodies to tango on legislation. But where’s Chuck? He has denounced the House bill as “dangerous,” with his usual nuance, but if he wants to avoid a default on U.S. debt he will have to pass a bill through the Senate. So far he’s done nothing but kvetch.

Senate Republicans have introduced the House debt bill on the calendar, teeing it up for a possible floor vote. Mr. Schumer responded by adding to the calendar a bill to raise the debt ceiling without reforms. Yet there’s no indication that he has any intention of holding a vote, much less negotiating.

Schumer needs the cooperation of Republicans, even though Democrats control the Senate. Yet Senate Republicans are united behind the House GOP proposal, leaving Democrats flat-footed and holding the bag.

Mr. Schumer and President Biden haven’t figured out that the House vote changed debt-limit politics. They hoped the House would fail, the President could blame Republicans for refusing to raise the debt limit, and as the deadline neared moderate Republicans would vote for a debt-limit increase without reform.

The Journal’s editors conclude:

But political bully ball might not work this time. The main business lobbies have shifted their emphasis since the House vote last week, and they’re now pressing Democrats to get in the game to avoid a default. Mr. Biden called Mr. McCarthy on Monday, and he has invited the four main legislative leaders to the White House next week. But he still shows no interest in negotiating with the House over anything other than the terms of GOP surrender.

This is risky business, especially as Ms. Yellen says the limit could be reached by June 1. There is no good reason other than political malpractice for the U.S. to default on its debt. Plenty of revenue is flowing in to pay interest on the debt. The main obstacle to a debt-ceiling increase now is the Democrats in the Senate and White House who are defaulting on the jobs they were elected to do.

Wall Street Journal subscribers can read the whole thing here.