On Wednesday, House Speaker Kevin McCarthy (R-CA) discussed the United States’ federal government’s debt crisis, saying that “the greatest threat to America is our debt.”
“I’m here to make sure their children do not have and continue this debt,” McCarthy said. “If we continue this trajectory we’re on, in the next ten years, we’ll spend $8 trillion just on interest. $8 trillion just on interest. What that means though, too, because of the spending that has been going on, that’s why you have inflation.”
“America’s strength will shrink,” McCarthy continued. “Everyone has always said, it doesn’t matter what occupation, whether you’re a U.S. General or not, the greatest threat to America is our debt. Our debt is now at 120% of GDP, meaning our debt is larger than our economy.”
“This is higher than at any time in American history,” he said. “It’s higher at any time in American history when the revenues that are coming into government are higher than at any other time. So we’ve got a lot of revenue, we just have a spending problem. And that’s where I want to find common ground.”
McCarthy’s comments came the same day he had a face to face meeting with President Biden to discuss the budget as the federal government has reached its debt ceiling of $31 trillion, and is set to default in June. Congressional approval is needed to raise the debt ceiling and allow for new debt so the United States can pay its already accrued bills. However, McCarthy has said he will not agree to raising the debt ceiling unless federal spending cuts can be negotiated.
Following their meeting, McCarthy said he believes that both he and Biden can reach an agreement “long before” the United States reaches default.
McCarthy said it was “a good first meeting,” but he and the president “have different perspectives on this.”
However, McCarthy said, “I think that at the end of the day, we can find common ground.”