So how does the debt ceiling crisis end? Let’s look at the priorities of the individuals involved for some clues.
Kevin McCarthy’s objectives are, in order of priority:
- Keeping his job as Speaker;
- Winning the 2024 election; and
- Protecting the interests of the GOP donor class.
Biden’s objectives are, in order:
- Preventing an economic crisis;
- Getting re-elected;
- Putting an end, once and for all, to this kind of hostage taking; and
- Splitting the GOP.
The average GOP House member from a Biden district–the person most likely to break the deadlock–wants the following:
- To prevent an economic crisis;
- To put himself in position to win the general election in 2024;
- To avoid a primary with a MAGA Republican; and
- To keep his wealthy donors happy.
When you combine these lists, what do you get? First, Biden can’t make a deal with McCarthy, because the latter’s primary objective is to keep his job, which will be endangered if he concedes anything from his party’s wish list. Second, the GOP member wants to make a deal with Biden, but he won’t just roll over and vote for a clean debt ceiling increase; he has to have something that looks meaningful in return in order to avoid a primary. Biden consequently only has two realistic alternatives: he can either offer a compromise package that will look reasonable to moderate GOP voters without turning off the blue base; or he can use one of the unilateral methods to eliminate the debt ceiling altogether. There are no other plausible options here; expecting the GOP to break under pressure is unrealistic.