‘Shrink the room’: How Biden and McCarthy struck a debt-limit deal and staved off a catastrophe

Title: ‘Shrink the Room’: How Biden and McCarthy Struck a Debt-Limit Deal and Staved Off a Catastrophe

Introduction

The debt-limit standoff between Joe Biden and Kevin McCarthy seemed intractable, but Mitch McConnell advised Biden to strike a deal with McCarthy alone to avert an economy-rattling default. Eventually, Biden and McCarthy adopted this approach and appointed trusted emissaries to negotiate a debt limit deal.

The Power of Personal Relationships

Biden and McCarthy, despite lacking a close relationship, worked together to prevent an unprecedented default that could have had severe economic and political consequences. The standoff was largely instigated by Republicans who aimed to use the debt limit threat to rein in federal spending.

The Negotiators and Their Efforts

Biden and McCarthy’s five negotiators played a critical role in resolving the impasse. They met daily, discussing priorities, red lines, and how to reach a deal. The presence of Steve Ricchetti, presidential counselor, and Shalanda Young, Director of the Office and Management and Budget, was particularly comforting to Republicans.

The Pause Button and a ‘Regressive’ Offer

The negotiations hit a rough patch as Republicans grew impatient with the White House’s resistance to curbing federal spending. Frustrated, Republicans put the talks on pause and made a public statement. When negotiations resumed, they presented a fresh proposal, including more rejected provisions and the House Republicans’ border-security bill.

Optimism, Late Nights, and Selling the Deal

Despite the escalating rhetoric, signs of progress emerged. Biden called McCarthy from Air Force One, expressing optimism. The negotiators worked long hours, sustained by coffee, gummy worms, and burritos. McCarthy rallied House Republicans, explaining the deal over pizza and effectively subduing the revolt. Biden, while remaining silent throughout the negotiations, privately reassured concerned Democrats.

Selling the Deal and Conclusion

Biden and McCarthy announced a deal in principle and faced the task of selling it. McCarthy gathered House Republicans, addressed their concerns, and ensured their support. The White House worked to mollify rank-and-file Democrats, explaining the intricacies of the agreement. After personal calls and briefings, the deal received significant bipartisan support in the House. Biden expressed gratitude and relief, emphasizing the responsibility of governing. The Senate then proceeded with its own vote.

Q: What was the advice given to Joe Biden regarding the debt-limit standoff?

A: Mitch McConnell advised Biden to strike a deal with House Speaker Kevin McCarthy alone, emphasizing that direct involvement from other leaders could be counterproductive.

Q: How did Biden and McCarthy approach the debt-limit negotiations?

A: Biden and McCarthy adopted the approach of appointing trusted emissaries to negotiate a deal, effectively reducing the number of direct participants in the talks.

Q: What role did the negotiators play in resolving the impasse?

A: The five negotiators, including Steve Ricchetti and Shalanda Young, played a critical role in bridging the gap between Biden and McCarthy. They met daily, discussing priorities, red lines, and working towards a compromise.

Q: How did Republicans view the debt-limit threat?

A: Republicans argued that the debt limit threat was necessary to rein in federal spending and used it as leverage, even if it meant moving the U.S. closer to default.

Q: How did Biden and McCarthy manage to stave off a potential default?

A: Through personal relationships, determination, and compromise, Biden and McCarthy worked together to prevent an unprecedented default that could have had severe economic and political consequences.

Q: How did the White House and House Republicans sell the debt-limit deal?

A: McCarthy gathered House Republicans, explained the details of the deal, and addressed concerns, effectively gaining their support. The White House worked to mollify rank-and-file Democrats, explaining the intricacies of the agreement and assuaging their concerns.

Q: How did the negotiations progress and what challenges did they face?

A: The negotiations faced challenges, with the talks momentarily pausing due to frustrations. However, as the negotiations progressed, optimism grew, and the negotiators worked grueling hours to reach a resolution.

Q: What was the significance of the debt-limit deal and the subsequent House vote?

A: The debt-limit deal, supported by a resounding 314-117 House vote, marked a turning point in resolving the impasse and demonstrated the ability of Biden and McCarthy to address a complex issue and uphold their responsibilities in governing.