(NewsNation) — Appearing before the New York Stock Exchange, House Speaker Kevin McCarthy blamed President Joe Biden for the country’s economic woes while touting a House Republican bill that would raise the debt limit while also cutting spending.
“This place represents the best of the American economy,” McCarthy said as he opened his Wall Street speech.
He referenced former President Ronald Reagan’s address before Wall Street where he referred to a “malaise” attacking the economy, in the form of government spending, regulation and taxes.
McCarthy attacked the amount of national debt, noting the U.S. is set to pay $10.5 trillion in interest payments over the next year.
“American debt is a ticking time bomb,” McCarthy said.
The speaker accused Biden of being “missing in action” and held the president responsible for adding to the national debt, making the U.S. more dependant on China and undermining Medicare and Social Security.
McCarthy compared the debt limit to a credit card limit and likened the situation to a household budget. However, economists say the two can’t be likened to each other, because governments have spending obligations that can’t be deferred the way household expenses can be and the government has more ability to control income than an individual by raising taxes or issuing bonds.
The House Republican bill to raise the debt limit includes cuts to spending, including taking back unspent COVID relief money since the government declared an official end to the pandemic and reinstating work requirements for those getting benefits. McCarthy blamed Biden for the country’s labor shortage, saying the lack of requirements led to people not wanting to work.
Many factors have contributed to the country’s labor shortage, according to the U.S. Chamber of Commerce, including fears about COVID-19, caring for children or other dependents and employers offering wages and benefits that are too low to attract workers.
Other spending cuts proposed in the GOP bill include capping subsidies with the Affordable Care Act, cutting funding for Environmental Protection Agency programs, canceling the Biden administration’s student loan forgiveness program, cancel programs that would purchase electric or low-emissions buses, garbage trucks and USPS vehicles, end funding for programs offering assistance for detained migrants and cancel funding for programs benefiting women, communities of color and the LGBTQ community.
The White House responded to McCarthy’s remarks and accused him of referencing a “vague MAGA wish list” that would increase costs for average Americans while giving tax breaks to businesses and the wealthy.
“Speaker McCarthy is breaking with the bipartisan norm he followed under Trump by engaging in dangerous economic hostage taking that threatens hard-working Americans’ jobs and retirement savings,” said Deputy Press Secretary Andrew Bates.