I’ve been writing for the better part of a year about the prospects for a debt ceiling crisis if the GOP wins control of either house of Congress. This is a virtual certainty, because it’s what Republicans do, particularly when extremists are effectively running the show. After all, if you want to “burn it down,” why not start with the nation’s credit?
The real question at this point is what the Republicans will demand in exchange for agreeing not to wreck the economy. My first guess was an end to Obamacare, but health care hasn’t figured prominently in the campaign, so I don’t think that will happen. My second guess was a national abortion ban, but the GOP appears to be too divided on that issue to put it at the top of the priority list. So what will it be?
My current prediction is the repeal of the IRA. This would destroy Biden’s most important policy accomplishment in the name of cutting spending and (so they will say) inflation.
How will Biden respond? See my next post.