How (and why) Biden should overcome the Supreme Court to end the debt showdown
âm coming to the HowTheLightGetsIn festival in HAY-ON-WYE with my novel Red Team Blues:
Sun (May 28), 1130AM: The AI Enigma
Mon (May 29), 12PM: Danger and Desire at the Frontier
Iâm at OXFORDâs Blackwellâs on May 29 at 7:30PM with Tim Harford.
Then itâs Nottingham, Manchester, London, Edinburgh, and Berlin!
Is it legal for Congress to default on the US national debt? It depends on who you ask. There are a ton of good legal arguments for and against, so perhaps it comes down to what the (degraded, corrupt, illegitimate, partisan) Supreme Court says?
Put in those terms, it seems like the game was over before it began. Biden should just surrender, hand the most extreme wing of the (degraded, corrupt, illegitimate, authoritarian) Republican Party whatever it wants, even if doing so will push Bidenâs approval rating even lower, dangerously close to the next federal election.
In this telling, the Republicans have already won. The decision to let the GOP steal three Supreme Court seats, combined with the decision not to end the debt ceiling charade when Dems had the majorities to do so, means that from now on, we live in the GOPâs shithole country, where the only âfreedomsâ that matter are the freedom to control othersâ bodily autonomy and gender expression; the freedom to exploit labor; the freedom to censor ideas that challenge white nationalist, imperialist messages; and the freedom to menace with open-carry assault weapons:
In other words, weâre screwed. Might as well dig a hole, climb inside, and pull the dirt in on top of us.
Fuck that.
There are clear majorities in support of the Build Back Better agenda, and even for the watered down Machin Synematic Universe version we got through the Infrastructure Bill. If the Dems could mobilize votersâââby convincing them that they were committed to doing things rather than capitulatingâââthey could win strong majorities in 2024. Even in the gerrymandered, antimajoritarian America, electoral wins are possibleâââthey just require overwhelming turnout, rather than the 50.00001% âvictoriesâ favored by âdata-drivenâ Democratic consultants (victories that leave the party incapable of governing, and let monsters like Joe Manchin hold the entire nation hostage).
Maybe Iâm wrong. Maybe doing things wonât mobilize voters. But if weâre already going to stipulate that without significant majorities, the real President of the United States is the three-headed monster (Gorsuch, Thomas, and Roberts), and the billionaires who yank their chains, then what do we have to lose?
There are a lot of things that Biden could try to get through the debt ceiling crisis without giving up on the promises he made to the American people and the programs the American Congress passed. Hereâs a couple interesting ones, courtesy of Brad DeLong:
âThe Federal Reserve might simply record a negative balance in the Treasury account,â then create an âoverdraftâ account and pay the USâs obligations out of it;
The Fed could tell retail banks trying to clear government checks that the checks didnât clear, and the banks could tell their depositors, â your Treasury check has bounced, but do not worry, we have credited your account, anyway, and will handle this, and please be very grateful to us.â
Of course, there are lots of other possibilities: Biden could issue an Executive Order to the effect that the Debt Ceiling violates the 14th Amendment. Or that it violates the Contracts Clause. Or he could order the Treasury to start issuing coupon-free bonds. Or he could just mint the coin:
If Biden does something about the debt default, and the Supremes block it, then the default is their fault. Whatâs more, itâs a mess they absolutely do not want to get into, like deciding which of the USâs creditors will and wonât get paid when they sue over the default. And if the court wonât do it, will they give the president the power to âjust pick and choose what gets paid? That would give him a de facto line-item veto over the entire budget, and the Court has already ruled that a law explicitly giving him that power is unconstitutionalâ:
Basically, if the Supreme Court kills Bidenâs attempt to resolve the budget crisis, then it becomes the Supreme Courtâs problem, as everyone owed a federal payment âsay, Social Security beneficiaries or military contractors,â brings a caseââââThere would be tens of millions of such potential litigants.â
So what should Biden do?
Call their bluff.
First, mint the coin. If the court strikes that down, issue coupon-free bonds. If the court strikes that down, declare debt ceilings to violate the 14th Amendment. If the court strikes that down, declare it to violate the Contracts Clause. Keep doing it. Throw in every solution including the kitchen sinkâââbut never give into the GOPâs demand for Biden to violate his promise to the American people and unilaterally tear up laws establishing programs that make our lives better.
This is what Lincoln did when the Supreme Court blocked his attempts to end slavery. Itâs what FDR did when they blocked the New Deal. The court doesnât have an army, it canât force its decisions on the American people. It doesnât have a bureaucratic workforce and it canât take over the administrative branchâââhell, they donât even have the keys to the office buildings.
The Supreme Courtâs power comes from its legitimacy, not force of arms, and while they may not act like it, the Supremes know in their bones that without legitimacy, they are nothing:
The justices in stolen seats have made it clear that they consider themselves to be âa de facto super-legislature that rules in favor of its own partisan policy objectives based on tendentious up-is-down reasoning or no reasoning at all.â This is an illegitimate proposition.
The Supreme Court canât get any less legitimate. If Biden were to ignore the Supremes and make good law in the teeth of their pronouncements, it couldnât make the situation any worse than it is today. The Supremes have set themselves against labor law, against climate resiliency, against bodily autonomy, against political accountability, against the rule of law itself. We should notâââwe must notâââcede the power to overrule democratically elected lawmakers and the will of the people.
As Cooper says, Biden should tell the Supremes to go pound sand and then âraise holy hell in speeches and the press to make clear the grotesque irresponsibility of what is happeningâ:
Hereâs an institution trying to cause a completely pointless national default, destroying untold jobs, businesses, and the credit rating of the country, whose elite members are all unelected, where five members of the majority were appointed by a president who took office after losing the popular vote, and one of whom occupies a blatantly stolen seat. Hereâs an institution that has struck down anti-corruption laws by the bushel and is openly rolling in oligarch graft like Scrooge McDuck, while declaring itself to be immune from oversight. All that would add to the political pressure on the justices.
If Biden canât do well for the American people they they will not turn out in the massive majorities that Democrats need to get minimal majorities. If Biden canât do well for the American people, then Bidenâââwho would lose an election to either Ron DeSantis or Donald Trump if it were called todayâââwill turn Americaâs predators loose on its people for at least four more years:
And letâs face it, itâll be Trump. DeSantis is dead in the water. The GOP is the party of out-of-control, swivel-eyed loons whoâve been whipped into a terrorized frenzy by an evil, crapulent senescent Australian billionaire and his freak henchmen, like the taint-tanning frozen food failson. They arenât going to elect âsmart Trump.â They like âstupid Trumpâ (AKA âTrumpâ) too much.
Catch me on tour with Red Team Blues in Hay-on-Wye, Oxford, Manchester, Nottingham, London, and Berlin!
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[Image ID: A kitchen sink. The Supreme Court building protrudes from it. Behind the sink is a window. Joe Biden grins from the other side of the window.]
Image:
Joe Ravi (modified)
https://commons.wikimedia.org/wiki/File:Panorama_of_United_States_Supreme_Court_Building_at_Dusk.jpg
CC BY-SA 3.0
https://creativecommons.org/licenses/by-sa/3.0/deed.en
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Originalism, the Contracts Clause, and the Sveen Case
Cornell law professor Michael C. Dorf argues that the form of originalism typically espoused by scholarsâin which constitutional interpretation aims to recover the original public meaning of the textâoften ends up being abused in practice. Judges and justices borrow the respectability of public meaning originalism to justify a generally discredited form of originalism that seeks answers in the framersâ and ratifiersâ intentions and expectations. To illustrate this point, Dorf points to Justice Gorsuchâs recent dissent in Sveen v. Melin, which looks not to the text of the Contracts Clause but to what Justice Gorsuch inferred the framers and ratifiers intended and expected.