Playing with Fire

A lot is at stake in the debt dispute in the U.S., and we must all hope that it ends well, as it usually has done in the past, and that Washington remains solvent. A commentary.

U.S. Treasury Secretary Janet Yellen’s warning of a possible U.S. default cannot be taken seriously enough. If the debt dispute between President Joe Biden and Congress is not resolved swiftly, the most powerful country in the world may not be able to meet its obligations at the start of June, which would have dramatic consequences for not only the world’s largest economy, but also the global economy.

It does not have to come to that. After all, U.S. politicians have nearly always found a solution to these kinds of disputes in the past. But this time, Republicans are particularly keen to stand firm. That could come at the expense of better climate action or improved medical insurance for millions of people. It will therefore be interesting to see whether Biden and his Democrats stay the course and what they ultimately have to offer Republicans in order to save the situation as a whole.

In fact, Republicans do not have much to gain from this power struggle other than small territorial gains. However, that does not mean that they will forgo their theatrics, which, above all, will keep their supporters happy.