Odd Lots

On the Debt Ceiling, the White House Is Doing What It Said It Wouldn't Do

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.

43:49

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Episode guests

Arnab Datta

Skanda Amarnath

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Episode notes

Intro

2min

Navigating the Debt Ceiling Debate

9min

Reflections on the 2011 Debt Ceiling Crisis and Its Economic Impact

2min

Navigating the Debt Ceiling: Legal and Strategic Options

11min

Navigating Legislative Complexities Amid Urgency

2min

Navigating Financial Workarounds: The Treasury's Dilemma

6min

Navigating the Debt Ceiling Dilemma

13min

Exploring the Debt Ceiling and Its Implications

3min

In 2011, then-Vice President Biden had a front row seat to a bruising debt ceiling standoff between President Barack Obama and House Speaker John Boehner. That fight arguably derailed the Obama presidency and the nascent economic recovery. After that experience, Biden and his team had insisted that this time they would not negotiate over a debt ceiling increase. Yet here we are, and the current administration is doing exactly that. According to the Treasury Department, we're just days away from the so called "X-date" (when a US default would occur) and both the White House and new House Speaker Kevin McCarthy have been debating what conditions a hike in the debt ceiling should come with. So how did they get into this situation? And what were the other options? On this episode we speak with Skanda Amarnath, executive director of Employ America, and Arnab Datta, senior counsel of Employ America, about the current state of play and how it might have been avoided.

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