Raise the roof or break the debt ceiling
Raise the roof or break the debt ceiling
April 23 - April 30: US Debt Ceiling 🤺; potential Biden vs Trump rematch 🥊; Tucker Carlson leaves Fox✌️
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US Debt Ceiling Battle
1-sentence summary: The US House of Representatives has passed a Republican-backed bill to raise the debt ceiling and cut spending, which is unlikely to pass in the Senate, but strengthens the House Speaker's position in negotiations with the White House.
What is the debt ceiling and why is it important?
The debt ceiling is the maximum amount of money that the US government is allowed to borrow to pay its bills.
Congress must raise the debt ceiling before the government runs out of money to pay its bills, which could happen as soon as June.
House Republicans passed a bill proposing to raise the nation’s $31.4 trillion borrowing limit in exchange for deep cuts in government spending, but with President Biden’s reluctance to make cuts, the bill faces an uncertain future in the Democratic-controlled Senate.
Worries over a debt ceiling showdown are creeping into US options markets, as investors grow increasingly concerned that lawmakers will be unable to hammer out a deal in the coming weeks, potentially sparking stock volatility as a key deadline nears.
Sources: 1. Wall Street Journal, 2. Reuters, 3. Washington Post, 4. Washington Post
What is the Republican-backed bill to raise the debt ceiling and cut spending?
The Republican-backed bill is called the Limit, Save, Grow Act of 2023. It proposes to raise the borrowing limit until the government incurs another $1.5 trillion in arrears or through the end of March 2024, whichever occurs first. The bill includes aggressive caps on federal spending, rolling back the budgets for key agencies to the levels adopted in the 2022 fiscal year and then limiting future growth to 1 percent annually for the following decade. These and other cuts are expected to save the government roughly $4.8 trillion over the next 10 years, according to the nonpartisan Congressional Budget Office. The bill has been passed by the House Republicans with a vote of 217-215, with all Democrats voting no.
Sources: 1. New York Times, 2. Washington Post, 3. NBC News, 4. Wall Street Journal
What are the potential outcomes if the US does not raise the debt ceiling?
Without enough money to finance all its operations, swaths of the economy would freeze, and one-tenth of all economic activity would stop.
Three million jobs could be lost, and there could be a crippling spike in interest rates and an extra $130,000 on a typical home loan.
Even a brief breach of the debt limit would kill almost a million jobs.
A default on the debt would produce an economic and financial catastrophe, and over the longer term, it would raise the cost of borrowing into perpetuity.
Investors would demand higher interest rates for buying U.S. bonds of legally dubious status, which could lead to a permanent increase in U.S. borrowing costs.
Sources: 1. CNN, 2. Washington Post
What is the controversy surrounding tax hikes and the debt ceiling?
The controversy surrounding tax hikes and the debt ceiling is that the House debt limit bill passed by Republicans proposes deep cuts in government spending in exchange for raising the nation's borrowing limit, which Democrats argue will result in a tax increase for middle-income people. The bill includes tax credits that benefit middle-class people, and if the bill passes and the credits are repealed, it would make their purchases more expensive, which Democrats argue is a tax increase. Democrats are pushing for a clean debt limit bill to avoid default or passing a clean debt ceiling with no brinkmanship or hostage-taking, and then discussing cuts and tax increases in the budget process. The two sides don't agree on the parameters of the debate, and if a clean debt limit bill were put before the Senate right now, it would fail. The jockeying over raising the debt ceiling has become a partisan ritual to gain political points, but marching toward a debt ceiling default puts American living standards on the line.
Sources: 1. Washington Post, 2. Washington Examiner, 3. CNN, 4. Wall Street Journal
Joe Biden's 2024 Re-Election Bid
1-sentence summary: President Biden has announced his intention to run for re-election in 2024, potentially setting up a rematch against former President Trump, and has chosen a new campaign leader.
What are the chances of a rematch between Biden and Trump?
President Biden has announced his 2024 re-election campaign, setting up a potential rematch with former President Donald Trump.
Polls show that Trump has a substantial lead in the Republican presidential field despite facing criminal charges in New York and the potential for more legal problems on the horizon.
Therefore, it seems likely that there will be a Biden-Trump rematch in the 2024 presidential race.
Sources: 1. Wall Street Journal, 2. Wall Street Journal
What is the reaction to Biden's announcement?
There are mixed reactions to Biden's announcement of his re-election bid in 2024. Some believe that he has the best chance of defeating the Republican nominee, while others are concerned about his age and sliding approval rating. A recent NBC News poll shows that 70% of Americans, including 51% of Democrats, do not want Biden to run for president in 2024, with nearly half of respondents citing his age as a top reason. However, Biden has dismissed concerns about his age and is expected to lean heavily on surrogates and digital media to boost his message.
Sources: 1. Washington Examiner, 2. MSNBC, 3. Washington Post, 4. NBC News
Here is FiveThirtyEight’s page on “How Popular is Joe Biden?”
What are some of the main issues that Biden is likely to focus on in his campaign?
According to the articles, President Joe Biden launched his 2024 campaign earlier this week. He is focusing on beating back "MAGA Republican extremists" and using the tagline "Let's finish the job." The campaign is expected to lean heavily on surrogates and digital media to boost Biden’s message as he makes his case for a second term. However, Biden confronts other liabilities as he enters 2024, including a sliding approval rating. Additionally, there are concerns about his age, with nearly half of respondents citing it as a top reason not to support his re-election bid.
Sources: 1. NBC News, 2. Washington Examiner
Tucker Carlson leaves Fox News
1-sentence summary: Tucker Carlson has left Fox News following a lawsuit from Dominion Voting Systems, with many speculating about his next move and the future of the network.
Why did Tucker Carlson leave Fox News?
According to Bill O'Reilly, Tucker Carlson was caught off guard by his departure from Fox News due to future lawsuits, including a lawsuit filed by a producer who taped Carlson's broadcast. Fox News lawyers were worried about the lawsuit, and the tapes did not make the Carlson broadcast look good. Carlson's departure was announced by Fox News on Monday, April 24, 2023, and his last show was on Friday, April 21, 2023. Fox News hosts made little mention of Carlson after his departure, and his replacement is yet to be announced.
Sources: 1. The Blaze, 2. Washington Examiner, 3. MSNBC
What is Tucker Carlson's next move?
Tucker Carlson's next move is not yet clear, but he has received offers from One America News Network, The Heritage Foundation, and Glenn Beck's BlazeTV. Carlson was unexpectedly cut from Fox News Media, where he hosted the most-watched cable news show of 2023.
Sources: 1. Washington Times
The street-lights of bias
News bias is primarily controlled by the streetlight effect. Different news outlets shine a light on different aspects of reality, and it's easy to get caught up in one perspective without seeing the full picture. This can lead to a distorted understanding of events and issues.
We built Clarity to help you see the full picture. By bringing together bias ratings, attention scores, and the most advanced AI language models, we’re able to help you see where all the lights are shining.
The left is obsessing over
Trump Sexual Assault Allegation Trial: E. Jean Carroll's rape allegation against Donald Trump is going to trial in New York, with Trump's lawyer facing criticism for questioning why Carroll didn't scream during the alleged assault
Pence Testifies in Trump Probe: Former Vice President Mike Pence testified before a federal grand jury investigating former President Donald Trump's role in the January 6th Capitol riot.
The right is obsessing over
Hunter Biden's Legal Troubles: The ongoing legal drama surrounding Hunter Biden's child support payments and his relationship with his daughter's mother is being met with skepticism and indifference from Democrats, while he may be living at the White House to evade legal papers
That’s it for this week. To see a full rundown of the biggest stories of the week, along with a detailed analysis of how they are being covered by the various tribal factions, check out useclarity.com. And if you’re curious, here’s how it works.