McCarthy on Wall Street: Biden Is 'Missing in Action' on the Debt, a 'Ticking Time Bomb' (April 17, 2023)

House Speaker Kevin McCarthy took the debt fight to Wall Street. In a speech at the New York Stock Exchange on April 17, 2023, McCarthy “said the nation’s debt load is a ‘ticking time bomb’ and Biden is ‘missing in action’ as the deadline nears to raise the debt limit,” The Associated Press reported [1].

“Pres. Biden has been missing in action and misleading the public. Mr. President, with all due respect, enough is enough. This is not how the leader of the free world should act,” McCarthy said [1].

“Let me be clear, a no-strings-attached debt limit increase will not pass. But since the President continues to hide, House Republicans will take action,” he said [1].

The video above shows McCarthy’s April 17, 2023, speech in New York. Quotes are from The Associated Press, the official White House transcripts and the Clerk of the House [1][2][3][4][5].

”Capping Future Federal Spending at 1%”

McCarthy put his terms on the table. He “pledged on Monday to pass legislation to raise the nation’s debt ceiling — but on the condition of capping future federal spending at 1% — as he lashed out at President Joe Biden for refusing to engage in budget-cutting negotiations to prevent a debt crisis,” the AP reported [1].

The plan would “raise the nation’s debt limit for one year,” paired with “a plan to roll back federal spending to fiscal 2022 levels and cap future spending at no more than 1%,” according to the AP [1].

The clock was running. “The Treasury Department has said it is taking ‘extraordinary measures’ to continue paying its bills, but money will run short this summer,” the AP reported [1].

McCarthy still had to hold his own side together. He was “working furiously to unite the ‘five families’ — the various caucuses including the Freedom Caucus, Republican Study Committee and others within the House Republican majority — around a plan that could be presented to Biden to kickstart negotiations,” according to the AP [1].

The room liked it. “Once, his speech was interrupted by applause from the executives and others at the stock exchange,” the AP noted [1].

”A Speech Isn’t a Plan”

The White House brushed him off. It “said ahead of McCarthy’s address that ‘a speech isn’t a plan,’ dismissing his overture and re-upping pressure on the Republican leader to approve a debt ceiling increase with no strings attached,” the AP reported [1].

“The White House and Democrats in Congress have been unwilling to engage in talks with the Republicans, saying Congress must simply raise the debt limit without conditions,” the AP said [1].

The Numbers McCarthy Was Talking About

The debt limit stood at “$31 trillion,” the AP reported. “Federal spending skyrocketed during the COVID-19 crisis, rising to $7.4 trillion in 2021, before sliding back to $6.2 trillion in fiscal 2022, according to Treasury Department data.” [1]

“The nation runs more than $1 trillion in annual deficits, and the last time the federal budget was balanced was in 2001,” the AP noted [1].

The debt had grown under both parties. It climbed “doubling during the George W. Bush administration with the 9/11-era wars overseas and spiking again during the Obama administration as spending rose and tax revenue plummeted during the Great Recession,” the AP reported [1].

”That’s Not Negotiable”

Nine days later, the House did what McCarthy promised. It passed H.R. 2811, the “Limit, Save, Grow Act,” on April 26, 2023, by 217 to 215. No Democrat voted for it, and four Republicans voted no [3].

That same day, Biden held firm in the Rose Garden. “Republicans say you’re refusing to negotiate on the debt limit. They’re saying you’re missing in action,” a reporter shouted [2].

“I’m happy to meet with McCarthy, but not on whether or not the debt limit gets extended. That’s not negotiable,” Biden answered [2].

By the Numbers

$31 trillion: the debt limit at the time [1].
1%: McCarthy’s proposed cap on future spending [1].
$7.4 trillion: federal spending in 2021, per Treasury data cited by the AP [1].
217-215: the House vote on the Limit, Save, Grow Act [3].
314-117: the House vote on the final deal [4].

What Happened Next

Biden negotiated. Five weeks after “not negotiable,” the House passed H.R. 3746, the “Fiscal Responsibility Act,” on May 31, 2023, by 314 to 117 [4].

Two days later, Biden praised the Speaker. “I want to commend Senator—Speaker McCarthy. You know, he and I, we—and our teams—we were able to get along and get things done,” Biden said in an address to the nation [5].

“We were straightforward with one another, completely honest with one another, and respectful with one another. Both sides operated in good faith. Both sides kept their word,” Biden said [5].

He also took credit for the savings. “We’re cutting spending and bringing the deficits down at the same time,” Biden said [5].

For McCarthy’s first-100-days pitch the same day, see HYGO News’ page on April 17, 2023. For Biden’s Rose Garden news conference, see the page on April 26, 2023.