Former labor secretary proposes unilateral action – Cryptopolitan

Robert Reich, a former U.S. secretary of labor and counselor under Presidents Bill Clinton and Barack Obama, has called on President Biden to bypass Congress in raising the nation’s debt ceiling. Reich believes the U.S. Constitution grants the president the authority to do so, arguing that the constitutional mandate to never question the validity of the country’s public debt takes precedence over the existence of a debt ceiling.

Using the Fourteenth Amendment as justification

Reich cited the Fourteenth Amendment, which states, “the validity of the United States public debt, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.” He asserts that this amendment gives the president the power to raise the debt ceiling unilaterally, even without congressional approval.

Reich’s proposal comes amid concerns that Republicans are using the debt ceiling issue as leverage to push for tax cuts that could negatively impact vulnerable populations, such as those reliant on healthcare, education, and veterans’ benefits. He urges President Biden to prioritize the constitutional mandate and the country’s welfare over the debt ceiling issue.

Clarifying the impact on Congress

In his video, Reich clarifies that, if taken, this action would not infringe on Congress’s existing powers, stating, “The Constitution makes it clear that Congress’s power to borrow money does not include the power to default on such borrowings.” Other economists, such as Peter Schiff, have warned that the U.S. could eventually default on its debt.

Currently, bipartisan discussions surrounding the debt ceiling have been postponed until Friday. Senate Majority Leader Chuck Schumer has expressed concern that House Speaker Kevin McCarthy is unwilling to take the possibility of default off the table, leading to a deadlock in negotiations.