Added to the U.S. Constitution in 1868, Section 4 of the Fourteenth Amendment states that “the validity of the public debt of the United States authorized by law shall not be questioned.” In other words, spending that Congress has voted to honor must be honored, regardless of whether the debt ceiling is exceeded. The provision was created at the time to prevent Southern lawmakers from undermining the American union by repudiating the federal debt created by the war.
As some economists explain, invoking the 14th Amendment would mean the Treasury could continue to borrow beyond the limit, issuing federal debt to fund government operations. To do so, President Joe Biden would simply ask Treasury Secretary Janet Yellen to continue issuing much-needed debt to pay the nation’s bills. This would effectively give the president the power to exceed the debt ceiling without consulting Congress.
President Biden has said that if the White House and Congress fail to raise the debt ceiling, he will consider invoking the 14th Amendment. This idea has met with opposition from Republican House Speaker Kevin McCarthy. “If President Biden uses the 14th Amendment in this case, I think he has failed both parties and the Democrats themselves,” McCarthy said.
At a press conference before the G7 Finance Ministers and Central Bank Governors Meeting in Japan on May 11, Minister Yellen emphasized that if Congress does not increase the federal debt ceiling, currently at 31,400 billion USD, the consequences for the economy and finances will be very serious.
“A default would threaten the achievements that the US has worked so hard to achieve over the past few years in the process of economic recovery after the Covid-19 pandemic. A US default would trigger a global recession that would not only cause the world's No. 1 economy to decline but also shake America's position as a global economic leader,” Ms. Yellen warned.
Regarding the possibility of using the 14th Amendment, Ms. Yellen said that borrowing beyond the debt limit set by Congress is illegal. But failing to meet Congress’s spending obligations could be a more serious violation. This legal contradiction exists because the 14th Amendment was created long before the debt ceiling was created and added to the Constitution in 1917.
Using the 14th Amendment to raise the debt ceiling has also generated mixed opinions. Researcher Philip Wash of the American Enterprise Institute asserted that invoking the 14th Amendment would create an opportunity for the President to abuse his power by allowing the executive branch to bypass Congress. Professor Rebecca Zietlow of the University of Toledo Law School said that invoking the 14th Amendment in this case is unprecedented, causing many experts and White House advisers to worry that it could have legal and economic consequences.
“In the past, other administrations, such as President Barack Obama's administration, have also considered remedies under the 14th Amendment. But in reality, the US government has never had to use the 14th Amendment because Congress has always acted promptly,” said US channel CNN.
President Joe Biden and House Speaker McCarthy are scheduled to meet this week to discuss the debt ceiling. In addition to Amendment 14, other proposals are being considered, such as issuing perpetual bonds, but like Amendment 14, many experts believe these measures could backfire.
BINH NGUYEN
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