While it took 15 votes and a days-long political battle, U.S. House Rep. Kevin McCarthy (R-CA) recently became Speaker of the House, which is one of the most powerful positions in all politics.
The title instantly put him in the spotlight when it came to the ongoing debt ceiling debate, in which lawmakers are headed for a showdown regarding whether to raise the maximum amount the U.S. is allowed to borrow to fund its obligations. Baked into this debate are discussions on spending cuts and whether they might impact several government-run programs, including Social Security. There are also questions of how these programs might be impacted if lawmakers fail to raise the debt ceiling.
Now essentially at the helm of the Republican Party, which controls a majority of the House, McCarthy has recently had to speak a lot about Social Security. Here's the must-read McCarthy quote as it relates to the program.
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Softening his tone
Earlier this month, the U.S. government hit its debt limit, which is the maximum amount of money it can borrow to fund obligations it has already approved and committed to. The next course of action, which has happened many times throughout history, is for lawmakers to raise the debt ceiling so they can keep paying for critical services such as government-run programs like Social Security.
But lawmakers can't seem to agree on much these days, and Republicans have previously vowed to try and barter for spending cuts in return for agreeing to raise the debt ceiling. Some of those cuts discussed are related to Medicare and Social Security. If the U.S. defaults on its debt, that could significantly and negatively impact the global economy and global markets.
This brings me to the must-read McCarthy quote. In a recent televised interview on CBS' Face the Nation, when asked about potential reductions to Social Security and Medicare, McCarthy said, "No. Let's take those off the table." When pressed further, McCarthy added: "Yeah. I mean, if you read our commitment to America, all we talk about is strengthening Medicare and Social Security."
This is certainly a markedly different tone than we've heard in the past. Republicans have floated ideas to try and fix Social Security funding issues that include raising the full retirement age (FRA) so retirees wouldn't be able to claim the full benefits they are entitled to until the age of 70. Currently, the FRA is 67 for people born in 1960 or later.
The Biden Administration seems to have found this to be a change in the Republican Party's tone as well -- and doesn't seem to be buying it.
White House spokesperson Andrew Bates responded to McCarthy's comments, saying, "For years, congressional Republicans have advocated for slashing earned benefits using Washington code words like 'strengthen,' when their policies would privatize Medicare and Social Security, raise the retirement age, or cut benefits."
What to make of McCarthy's words
To become Speaker, McCarthy had to make a lot of concessions to get the necessary votes. One of those allows any one member of the House to call a vote to remove him as Speaker, so while he holds the gavel, McCarthy has less power than other Speakers before him.
But I think McCarthy saying that Social Security and Medicare cuts are "off the table" is good news for retirees. This makes it more likely that lawmakers can raise the debt ceiling and avoid any potential disruptions to Social Security or Medicare.
McCarthy has been in politics for a long time and likely has some understanding of the position he is in. Therefore, I find it hard to believe he would make such statements about Social Security and Medicare without at least thinking that he had the backing of enough Republican House members.
