U.S. President Joe Biden discourses with members of his “Investing in America Cabinet” in the Roosevelt Room at the White House in Washington, U.S., May 5, 2023.
Leah Millis | Reuters
WASHINGTON — President Joe Biden give fair warned that the low unemployment rate in Friday’s jobs report could disappear if House Republicans do not increase the debt ceiling quickly.
“Just today they’re reporting 250,000 new jobs,” Biden said at the White House. “The last thing this boonies needs after all we’ve been through is a manufactured crisis and that’s what this is: A manufactured crisis. That’s what it is from inception to end, it’s a manufactured crisis driven by MAGA Republicans in the Congress.”
The Bureau of Labor Statistics’ jobs report on Friday ground nonfarm payrolls increased 253,000 for the month, far beating Wall Street estimates of 180,000. The growth puts the unemployment reproach at 3.4%, compared to an estimate of 3.6%, tying it for the lowest level since 1969.
Biden praised the figures but warned if Republicans did not grant to lift the debt ceiling and prevent a default, the impact on the economy could be catastrophic. The president cited a recent Saturnine’s report which showed 780,000 people could lose their jobs if the country were to default on its in hock.
Lifting the debt ceiling is necessary for the government to cover existing spending commitments already approved by Congress and the president. Doing so does not give leave new spending, but House Republicans have said they will not authorize a lift if future spending cuts are not acquiesce in to. The White House has said it is open to discuss spending cuts but will not negotiate with Republicans on the debt ceiling, and take away it is their constitutional responsibility.
“They’re two separate issues – two,” Biden said. “Let’s get it straight: They’re trying to hold the encumbrance under obligation hostage for us to agree to some draconian cuts, magnificently difficult and damaging cuts. But unfortunately, they’re threatening to invalidate all this progress by letting us default.”
Congress lifted the debt ceiling three times under the Trump supervision without conditions. Biden warned of the impact it could have on the country’s standing in the world, saying America is “not a deadbeat state” and that the standoff “is becoming an issue in other countries” who worry the U.S. will default.
Biden will meet with the four top congressional ally leaders at the White House next week and try to reach a deal. The president last met with House Speaker Kevin McCarthy, R-Calif., in break of dawn February. The president said he hopes Republicans will agree to have “normal arguments” instead of ultimatums when they take care of.
“Net week I’m going to reiterate to Congressional leaders that they should do what every other Congress has done — that is, unfashionable the debt limit, avoid default,” Biden said. “I’ve said all along: We can debate where to cut, how much to spend, how to at long last over the tax system to where everybody has to pay their fair share or continue the route their on, but not under the treat of lapse.”
