Say goodbye to job growth if debt ceiling is not lifted

WASHINGTON — President Joe Biden warned that the low unemployment rate in Friday’s jobs report could disappear if House Republicans don’t increase the debt ceiling soon.

“Just today they’re reporting 250,000 latest jobs,” Biden said on the White House. “The last item this country needs in any case we have been through is a manufactured crisis and that is what that is: A manufactured crisis. That is what it’s from starting to finish, it is a manufactured crisis driven by MAGA Republicans within the Congress.”

The Bureau of Labor Statistics’ jobs report on Friday found nonfarm payrolls increased 253,000 for the month, far beating Wall Street estimates of 180,000. The expansion puts the unemployment rate at 3.4%, in comparison with an estimate of three.6%, tying it for the bottom level since 1969.

Biden praised the figures but warned if Republicans didn’t comply with lift the debt ceiling and forestall a default, the impact on the economy might be catastrophic. The president cited a recent Moody’s report which showed 780,000 people could lose their jobs if the country were to default on its debt.

Lifting the debt ceiling is mandatory for the federal government to cover existing spending commitments already approved by Congress and the president. Doing so doesn’t authorize latest spending, but House Republicans have said they are going to not authorize a lift if future spending cuts aren’t agreed to. The White House has said it’s open to debate spending cuts but won’t negotiate with Republicans on the debt ceiling, and lifting it’s their constitutional responsibility.

“They’re two separate issues – two,” Biden said. “Let’s get it straight: They’re attempting to hold the debt hostage for us to comply with some draconian cuts, magnificently difficult and damaging cuts. But unfortunately, they’re threatening to undo all this progress by letting us default.”

Congress lifted the debt ceiling 3 times under the Trump administration without conditions. Biden warned of the impact it could have on the country’s standing on the planet, saying America is “not a deadbeat nation” and that the standoff “is becoming a difficulty in other countries” who worry the U.S. will default.

Biden will meet with the 4 top congressional party leaders on the White House next week and check out to succeed in a deal. The president last met with House Speaker Kevin McCarthy, R-Calif., in early February. The president said he hopes Republicans will comply with have “normal arguments” as a substitute of ultimatums after they meet.

“Net week I will reiterate to Congressional leaders that they need to do what every other Congress has done — that’s, pass the debt limit, avoid default,” Biden said. “I’ve said all along: We will debate where to chop, how much to spend, the way to finally over the tax system to where everybody has to pay their fair proportion or proceed the route their on, but not under the treat of default.”