By Mona Austin
(TSN): Talks of an economic collapse are rampant among financial thought leaders
With the budget deadline looming for June and pressure from Democrats, House Speaker Kevin McCarhy released a budget proposal on Wednesday that that depends on the debt ceiling being raised - an idea that Pres. Joe Biden rejects outright. The proposal, entitled the "Limit, Save, Grow Act of 2023," was dead on arrival with the White House taking a defensive posture in the media. The snub places the speaker in a precarious position of figuring something out that prevents deficit enlargement.
McCarthy's legislative framework would raise the debt ceiling for one year -- by $1.5 trillion or through March 31 of 2024 — whichever comes first —return discretionary spending to 2022 levels, and limit the growth of spending to 1% annually.
The impact of not having a sufficient federal budget could send the country into "catastrophic default" say White House officials that would ruin the economy. Experts predict around 6 million jobs would be lost.
The initial response is that the budget is not acceptable because it will cut social programs and scores of clean energy jobs the Biden Administration is creating. Retirement accounts, overall food safety, education an other programs that help families may also be jeopordized warned Press Secretary Karine Jean Pierre on Thursday. "They need to make sure we do not default and they can do that right away." It is families that are tying to make ends meet that will be affected the most.
Now that there is a tangible document to discuss the White House is preparing to do an in-depth review of the proposal that Deputy Press Sec. Andrew Bates said in a statement takes a two two-by-four. Bates said, the over 300-page plan "would enlarge the deficit when combined with House Republican proposals for tax giveaways skewed to the super-rich, special interests, and profitable companies."
The White House has not scheduled another meeting with Speaker McCarthy, firmly dismissing the chance for negotiations.
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