U.S. President Joe Biden speaks to members of his “U.S. Investment Cabinet” in the Roosevelt Room at the White House in Washington, U.S., May 5, 2023.
Lea Millis | Reuters
WASHINGTON – President Joe Biden warned that the low unemployment rate in Friday’s jobs report could disappear if House Republicans don’t raise the debt ceiling soon.
“Just today they reported 250,000 new jobs,” Biden said at the White House. “The last thing this country needs after all we’ve been through is a created crisis and that’s it: A created crisis. That’s what it’s like from start to finish, that’s it. a crisis created by MAGA Republicans in Congress.”
Friday’s Bureau of Labor Statistics employment report shows nonfarm work payroll increased by 253,000 VND for the month, beating Wall Street estimates of 180,000. The growth puts the unemployment rate at 3.4%, compared with an estimate of 3.6%, tying it to its lowest level since 1969.
Biden praised the figures but warned that if Republicans do not agree to raise the debt ceiling and prevent default, the impact on the economy could be dire. The president cited a recent Moody’s report that found 780,000 people could lose their jobs if the country defaults on its debt.
Raising the debt ceiling is necessary for the government to cover existing spending commitments approved by Congress and the president. Doing so does not authorize new spending, but House Republicans have said they will not allow an increase if future spending cuts are not agreed. The White House has said it is open to discussing spending cuts but will not negotiate with Republicans over the debt ceiling and that lifting it is their constitutional responsibility.
“They’re two separate issues — two,” Biden said. “Let’s be frank: They’re trying to hold debt hostage for us to agree to some draconian cuts, extremely difficult and damaging cuts. But unfortunately, they’re threatening to cancel all progress. this process by letting us default.”
Congress has lifted the debt ceiling three times under the Trump administration without conditions. Biden warned of the impact it could have on the country’s standing in the world, saying the US “is not a deadlocked country” and that deadlock “is becoming a problem in other countries.” “, who fear the US will default on its debt.
Biden will meet four of the top congressional party leaders at the White House next week and try to strike a deal. The President met with Speaker of the House Kevin McCarthy, R-Calif., at beginning of February. The president said he hoped Republicans would agree to have “normal arguments” rather than issue an ultimatum when they meet.
“Next week, I will reiterate to congressional leaders that they should do what every other Congress has done – get over the debt limit, avoid default,” Biden said. “I said all the time: We can debate where to cut, how much to spend, how to finally get around the tax system so everyone has to pay their fair share or stay on track. theirs, but not under the default treatment.”
