Biden says he won't cave to GOP's "whacko notions" on debt ceiling

President Biden tore into House Republicans Wednesday over their proposed spending cuts, accusing them of risking economic devastation unless he caves to their “whacko notions” to raise the debt ceiling.

The president’s remarks before a friendly crowd of union workers in Accokeek, Maryland, just south of Washington, is the latest escalation of his rhetoric over the national debt. His speech came at virtually the same moment that House Speaker Kevin McCarthy unveiled Republicans' 320-page plan to raise the debt limit by $1.5 trillion in exchange for a long list of spending cuts.  If the Republican-controlled Congress and Mr. Biden cannot reach an agreement on the debt limit in the next several weeks, the government could default on its bills, resulting in economic chaos in the U.S. and across the globe.

Mr. Biden has called on Congress to raise the nation’s debt limit, while Mr. McCarthy, California Republican, is demanding massive spending cuts and policy concessions.

Mr. Biden slammed Mr. McCarthy’s negotiating tactics, saying the GOP's plan would result in a 22% cut to entitlement programs like Social Security and Medicare, as well as raise interest rates on credit cards and car loans.

“They say they are going to default unless I agree to all these whacko nations they have. Default would be worse than totally irresponsible,” Mr. Biden said.

Both sides are making their case to the American people rather than to each other. Mr. McCarthy on Monday delivered a speech at the New York Stock Exchange outlining the GOP plan. Yet, neither Mr. Biden nor Mr. McCarthy has met in recent weeks to discuss their differences.

The pair met in early February but have had little communication since.  Mr. McCarthy is under pressure from House Republicans, including some who delayed his elevation to speaker, to rein in government spending. They say the rampant spending has contributed to inflation, increasing the cost of household goods.

Mr. Biden says the cuts would make it nearly impossible for the government to meet its obligations to citizens. He said the cuts would result in delays in Social Security payments, deny veterans necessary Medicare and increase costs. “It’s not about fiscal discipline. It’s about cutting benefits for folks that that they don’t seem to care much about,” Mr. Biden said. “It’s about finding ways to squeeze more out of the American middle class.”  Mr. McCarthy accused Mr. Biden of making theatrical speeches to his base rather than sit down with Republicans and hammer out a deal on the debt ceiling. He said it’s Mr. Biden who refuses to negotiate a deal. “President Biden is skipping town to deliver a speech in Maryland rather than sitting down to address the debt ceiling. He’s giving America’s debt the southern border treatment: ignore it and hope that it goes away,” he said through a spokesman.

He added that the Republican plan would limit government spending, save taxpayers money and grow the economy.

Mr. Biden’s remarks Wednesday are the latest in a series of attacks on House Republicans, who gained the majority in January. They’ve promised to be a buttress against what they call the Biden administration’s out-of-control spending.

Both Democrats and Republicans are facing a ticking clock after the Treasury Department started taking “extraordinary measures” to forestall a default.

The Biden administration believes it has until early June to raise the country’s borrowing limit before the government risks default.