Joe Biden finally signs the Fiscal Responsibility Act of 2023 after weeks of negotiations.
This law suspends all the public debt the country has until January 2025. The new legislation also determines different budget estimations and objectives facing up to the next two years. If this law had not been approved on Thursday by the Senate, and on Wednesday by the House of Representatives, the world’s economy could have been at serious risk.
Regarding the new law, Biden stated that it would have been very irresponsible if the agreement had not been reached, in addition, he encouraged Republicans and Democrats to keep trying in spite of the political differences. He also took Twitter to express his view on the new law:
I just signed into law a bipartisan budget agreement that prevents a first-ever default while reducing the deficit, safeguarding Social Security, Medicare, and Medicaid, and fulfilling our scared obligation to our veterans.
The passing of the legislation was not easy by any means. It took weeks of hard work to reach a deal that could temporarily solve the issue. Even though President Biden worked alongside Republican leader Kevin McCarthy, Democrats still expressed Republicans were doing wrong when trying to cut down on public expenditures to raise the debt ceiling.
Still, after the agreement was finished both Biden and McCarthy saw it as a victory, as the two opposite sides were able to convince their adversary and get concessions for the most important points each one had. Lastly, the President even congratulated McCarthy on his speech on Friday by saying:
We were able to get along and get things done. We were straightforward with one another, completely honest with one another, respectful with one another. Both sides operated in good faith. Both sides kept their word.