House Passes Budget & Debt Ceiling | What it ACTUALLY Does

hey everyone kevin here i want to give you a really quick update on the infrastructure package so take a look at this first the house just extended government funding through december 3rd and increased the debt limit through december of 2022 but don't get excited yet this does not mean our budget is actually extended which if we miss our budget extension it means that people don't get payments like child tax credits or social security recipients don't get paid it's bad and our debt limit if we miss that and we default on our payment obligations we get a big bad nick in the reputation of america's credit worthiness which would also be very very bad we've never defaulted on our payments before but this is not a done deal yet just because the house passed it does not mean anything because we got to get through the senate and then joe biden has to sign it the house passing it is easy joe biden signing it is easy the senate is the hard part and moody's is doing a really good job at fear-mongering this because they wrote this in the washington post the united states could plunge into an immediate recession if congress fails to raise the debt ceiling and the country defaults on its payment obligations this fall according to an analysis release tuesday this is obviously moody's right so here moody's found that a prolonged impasse over the debt ceiling would cost the u.s economy up to six million jobs and wipe out as much as 15 trillion dollars in household wealth and send the unemployment rate surging to nine percent from around five percent you've got a lot of drama going on right now this is in addition to the drama that we have around the infrastructure so just to make this clear on one hand we're trying to get the government funded right now and increase the debt limit democrats could do this alone in the senate if they would just use budget reconciliation they only have one more opportunity to use budget reconciliation they're refusing to do that because they want to use budget reconciliation on the three and a half trillion dollar infrastructure package so this is now leaving the government's funding and the debt limit up in limbo and everybody's kind of freaking out about it in congress now we've never defaulted before we always get this stuff done we always get the budget done sometimes it just gets done late so we should be able to get through this but mitch mcconnell republicans are promising they're not going to vote to contribute to the 60 votes needed in the senate to make this happen so that's kind of where we stand with unfortunately the government's budget and the increasing in the debt limit which as you heard from moody's could be a big issue now pat toomey doesn't think it'll be as big of an issue pat toomey thinks that the worst that would happen if we didn't raise the debt ceiling is that some better federal vendors won't get paid on time so really what you're going to have here unfold is this media battle where what you're going to see is democrats saying hey look we passed the bill in the house now you've got republicans it's their turn in the senate to help us vote and pass this why don't they want to fund the government why do they want to miss our payment obligations why are they trying to screw our credit worthiness right that's the media campaign that democrats are going to use to try to pressure republicans to go for this republicans are like no it's not that big of a deal those things wouldn't be that bad if it happened especially if it happened short term not as a prolonged impasse and ultimately we want to pressure you to use the budget reconciliation plan because if you use that option then the three and a half trillion dollar infrastructure package is basically dead so if democrats pass this with three and budget reconciliation trillion dollars is probably out the window which means no changes on the salt no changes on capital gains taxes the corporate uh corporate uh income tax rate the uh extension of the child tax credit for five years the preschool free preschool for children three and four lots of other things child care dependent care you name it like a lot of the things in that social infrastructure plan just wouldn't happen and so you've got this massive massive impasse right now in the senate and things are about to get real dirty over this next week at the same time joe biden is kind of freaking out because joe biden is actually so freaking out that he is going to be campaigning uh with pelosi and schumer tomorrow at 2pm they're going to meet to strategize how to get this infrastructure planned rammed through and joe biden is going to be meeting with representatives and congressmen and women over the weekend to figure out how can they negotiate actually getting the three and a half trillion dollar infrastructure package done along with the one trillion dollar package that's because nancy pelosi promised to vote on the one trillion dollar infrastructure package on monday but now people like the house progressives caucus are saying no we're not going to even vote to on the one trillion dollar package unless you give us the three and a half trillion dollar package but the three and a half trillion dollar package isn't done yet on top of that you had house democrats today some house progressives going we don't want to spend a billion dollars on the israeli iron dome so that was cut from the bill that was supposed to be passed today which was a normal part of our defense aid that we usually spend for other countries spend about 47 billion dollars in foreign aid every year and i mean i kind of get this because a lot of people are like hey let's focus on paying american bills first rather than other bills the foreign minister in israel thinks this is just a technical issue because of the the debt limit and it'll get passed again in the future but the point is you've got a giant disaster happening in congress right now you've got the house progressives caucus threatening not to vote on this bill and nancy pelosi said that she will not put this bill up for a vote unless she has the votes to actually get this thing passed uh which uh right now she nancy pelosi says uh quote we'll cross all the bridges when they come which is kind of funny because it's like the bridges are kind of here right now and this weekend so nancy pelosi is going to be stressing for a little while we'll be very interested to see what happens with this negotiation most importantly though over this next week is determining what happens with the debt ceiling and the government funding because right now the infrastructure package it ain't gonna happen i i don't expect uh the uh the three and a half trillion dollar infrastructure package to really be a priority uh at this very moment with the exception of biden and his discussion with democrats the biggest priority right now is that debt ceiling and extending government funding and when you hear news headlines that this thing has been passed it's only been passed in the house we've got a lot of work left to do we're nowhere near close if you want more details on exactly what's going on in the senate check out the link down below to see exactly uh in the video that i posted yesterday how that negotiation is looking this just gives you a little bit of an update on what just passed and how we really haven't gotten any further and if you found this helpful consider subscribing to the video and folks or to the channel that is and folks we'll see you in the next one thanks so much [Music] you

Channel: Meet Kevin

Views: 95,034

Rating: 4.9207258 out of 5

Keywords: stimulus, infrastructure

Id: B-KOJazgbyM

Length: 6min 49sec (409 seconds)

Published: Tue Sep 21 2021