Steve Bannon, former White House chief strategist to President Donald Trump and current host of the “War Room” podcast, has been advocating for Republicans to use the debt ceiling as leverage to rollback President Joe Biden’s planned expenditures.
The debt ceiling is a legal limit on the amount of money that the United States government can borrow to finance its spending. If the debt ceiling is not raised or suspended, the government can default on its commitments, which would have disastrous consequences for the economy and global markets.
Bannon argues that Republicans should demand spending cuts or policy concessions from the Biden administration in exchange for raising the debt ceiling. He believes that Democrats are using their slim majorities in Congress to push through a massive expansion of government spending and social programs that will harm the economy and weaken America’s global standing.
In a recent episode of the “War Room,” Bannon called on Republicans to use the debt ceiling as a “smart bomb” to force Biden to make concessions. He argued that Democrats are vulnerable on inflation and rising prices, and that Republicans should use this issue to their advantage.
Bannon’s proposal has received mixed reactions from conservatives and Republicans. Some see it as a necessary tactic to push back against the Democrats’ spending spree, while others worry that it could backfire and harm the economy.
Critics of Bannon’s plan argue that using the debt ceiling as a bargaining chip is risky and could lead to a government shutdown or even a default on U.S. debt obligations. They also point out that Republicans have already lost the leverage they had during the Trump administration, when they controlled both houses of Congress and could pass spending bills with a simple majority.
Furthermore, Democrats have argued that many of their proposed spending measures, such as the American Jobs Plan and the American Families Plan, are necessary to address long-standing infrastructure and social problems in the country. They also argue that the Biden administration’s proposed tax increases on wealthy individuals and corporations will offset the cost of these programs and prevent inflation.
Overall, Steve Bannon’s proposal to use the debt ceiling as leverage to rollback Biden expenditures is a controversial and risky strategy that could have far-reaching consequences for the U.S. economy and global markets. As Republicans and Democrats continue to debate the merits of these proposals, it remains to be seen whether Bannon’s “smart bomb” strategy will gain traction or fall by the wayside.