Odd Lots On the Debt Ceiling, the White House Is Doing What It Said It Wouldn't Do
14 snips
May 24, 2023 
Skanda Amarnath, the Executive Director of Employ America, and Arnab Datta, Senior Counsel at Employ America, dive into the current debt ceiling crisis. They discuss how the Biden administration's shift from non-negotiation to bargaining has emerged just days before a possible default. Reflecting on the damaging 2011 standoff, they explore why past mistakes continue to influence today's political landscape. The conversation also highlights innovative approaches like perpetual bonds and critiques the effectiveness of the debt ceiling in dealing with economic realities.
AI Snips
Chapters
Transcript
Episode notes
Debt Ceiling as Leverage
- The debt ceiling creates a holdout problem, giving Congress leverage to extract concessions.
- The executive branch owns the chaos of potential default, increasing pressure to negotiate.
White House Strategy
- The White House gambled that the extreme nature of Republican demands would create pressure for a clean debt ceiling increase.
- They hoped for political, media, and CEO pressure to force a resolution.
CEO Pressure Miscalculation
- The White House miscalculated by assuming CEOs would advocate for a clean debt ceiling hike.
- CEOs primarily want a hike, regardless of attached conditions, differing from the White House's goal.