Some Thoughts on… Holding the Center
Demonstrating bipartisan deal-making, President Biden, Speaker McCarthy, and the Senate approved legislation to increase the debt ceiling for the USA last week. Without the bill, the US government would not have been able to pay all its financial obligations to creditors, e.g. bond-holders, foreign governments, civil servants. The situation is similar to an individual who has willingly taken out loans for their house, car and college, but then self-imposes a limit on how much of the payments they should owe. There is an argument to curtail further borrowing, but if current debts are not paid, the future creditworthiness of the country would be devastated.
The current US debt is $31.4 trillion, or about 126% of annual US GDP. This debt is due to an accumulation of spending that has occurred under both Republican and Democratic administrations since Ronald Reagan. The recent debt ceiling increase took some time to negotiate, but the fact that all parties are not entirely happy with the compromise is a demonstration that political deal-making is still alive.
What am I taking away from this averted economic debacle?
First, that President Biden is getting more legislation passed than any other recent administration. From numerous legislative wins in the past two years, along with the Electoral Reform Act, Respect for Marriage Act, and now the raise in the debt ceiling, he is demonstrating leadership. This is in contrast to his approval ratings which may reflect that Americans are not yet seeing the impact of the legislation on their daily lives.
Second, the Senate and House of Representatives are not completely broken. There are several bills that are stalling in both houses, and representatives continue to diverge in their political views. Yet somehow, Congress is passing Federal legislation that is serving people.
Finally, the center seems to be holding. The winning formula to passing legislation in a divided Congress is finding common ground, whether on guns, trade, or debt ceilings, and then pushing through compromise despite objections from the far Right and far Left. Luckily there are still enough leaders crafty enough to thread this needle.
Perhaps the political pendulum will swing back to more centrist policies where much of the country falls. Compared to the end of the last administration, for me it doesn’t feel anymore as if things are falling apart, instead I have hope that things may actually be coming back together.
A big thanks to Steve Uhl for counter-point to an earlier version of the essay’s arguments.