Alternative Visions- The Biden-McCarthy Debt Ceiling Deal

Dr. Rasmus describes the likely terms of an imminent debt ceiling deal about to be announced this weekend. Reportedly ‘caps’ will be imposed on non-defense social program spending in a two year agreement, while Pentagon spending will rise 11% in the 2024 fiscal budget and an undisclosed further rise in 2025. Some of the possible details are considered: left over Covid funds, student debt cancellation, IRS hiring, work requirements to receive food stamps and Medicaid, fossil fuels licensing and environmental reviews. The NY Times estimates a 18% cut in non-defense spending while Pentagon spending (and higher still total Defense spending) rises. No tax increases to pay for the Pentagon hikes, especially no changes in Trump’s $4.5T 2017 tax cuts. Meanwhile, the CBO estimates failure to reverse the Trump tax cuts will result in a $2.7 trillion boost to the US deficit and debt, now at $31.4 trillion. How real is the US debt default if no deal? And what are some constitutionality issues