As this is being written, it would appear that the deal struck between President Joe Biden and House Speaker Kevin McCarthy over the weekend to raise the nation’s debt limit has averted what would have been a cataclysmic economic event, not only for the United States, but for the entire world.
By no means are we experts in the intricacies of the bond markets and their interaction with the world economy, but it’s clear that if the U.S. government had been unable to pay its bills, there would have been significant consequences for the entire global economy.
In our country, there would be a question as to whether Social Security payments, salaries for the military and other government employees, and countless other obligations would be paid on time.
We have to admit that we were among the skeptics who thought that Joe Biden could not have pulled it off, but he managed to do it. And yes, we also have to say that Kevin McCarthy rose above the fray, so to speak, for the good of the country.
Hopefully, their agreement will receive the support it deserves from the members of their parties in Congress so that our elected officials can return to the job of actually governing.