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Can Biden And McCarthy Avert A Calamitous Debt Default? 3 Evidence-Backed Leadership Strategies That Might Help

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Whether or not the U.S. defaults on its debt may depend on the leadership of Joe Biden and Kevin McCarthy. AP Photo/Mariam Zuhaib

The U.S. is teetering toward an unprecedented debt default that could come as soon as June 1, 2023.

In order for the U.S. to borrow more money, Congress needs to raise the debt ceiling – currently US$31.4 trillion. President Joe Biden has refused to negotiate with House Republicans over spending, demanding instead that Congress pass a stand-alone bill to increase the debt limit. House Speaker Kevin McCarthy won a small victory on April 26 by narrowly passing a more complex bill with GOP support that would raise the debt ceiling but also slash spending and roll back Biden’s policy agenda.

Biden recently invited congressional leaders, including GOP leader McCarthy, to the White House on May 9 to discuss the situation but insisted he isn’t willing to negotiate.

Rather than leading the nation, Biden and McCarthy seem to be waging a partisan political war. Biden likely doesn’t want to be seen as giving in to Repubicans’ demands and diminishing legislative wins for his liberal constituency. McCarthy, with his slim majority in the House, needs to appease even the most hard-line members of his party.

Having studied leadership for over 25 years, I would suggest that their leadership styles are polarized, oppositional, short-term and highly ineffective. Such combative leadership risks a debt default that could send the U.S. into recession and potentially lead to a global economic and financial crisis.

While it may seem almost impossible in the current political climate, Biden and McCarthy have an opportunity to turn around this crisis and leave a positive and lasting legacy of courageous leadership. To do so, they need to put aside partisanship and adopt a different approach. Here are a few evidence-backed strategies to get them started.

1. Moving from a zero-sum game to a more holistic approach

Political leaders often risk being hijacked by members of their own party. McCarthy faces a direct threat by hard-line conservative members of his coalition.

For example, back in January, McCarthy agreed to let a single lawmaker force a vote for his ouster to win enough votes from ultraconservative lawmakers to become speaker. That and other concessions give the most extreme members of his party a lot of control over his agenda and limit McCarthy’s ability to make a compromise deal with the president.

Biden, who just announced he’s running for reelection in 2024, is betting his first-term accomplishments – such as unprecedented climate investments and student loan forgiveness – will help him keep the White House. Negotiating any of that away could cost him the support of key parts of his base.

My research partner Marianne W. Lewis and I label this kind of short-term, one-sided leadership as “either/or” thinking. That is, this approach assumes that leadership decisions are a zero-sum game – every inch you give is a loss to your side. We argue that this kind of leadership is limited at best and detrimental at worst.

a Black man and a white man stand next to each other holding Nobel Peace prize folders and medals
Nelson Mandela, left, and F.W. de Klerk won the Nobel Peace Prize for helping end apartheid in South Africa.
Jon Eeg/Pool photo via AP

Instead, we find that great leadership involves what we call “both/and” thinking, which involves seeking integration and unity across opposing perspectives. History offers examples of how this more holistic leadership style has achieved substantial achievements.

President Lyndon B. Johnson and fellow Democrats were struggling to get a Senate vote on the Civil Rights Act of 1964 and needed Republican support. Despite his initial opposition, Republican Sen. Everett McKinley Dirksen – then the minority leader and a staunch conservative – led colleagues in crossing party lines and joining Democrats to pass the historic legislation.

Another example came in 1990, when South Africa’s then-President Frederik Willem de Klerk freed opponent Nelson Mandela from prison. The two erstwhile political enemies agreed to a deal that ended apartheid and paved the way for a democratic government – which won them both the Nobel Peace Prize. Mandela became president four years later.

This integrative leadership approach starts with a shift of mindset that moves away from seeing opposing sides as conflicting and instead values them as generative of new possibilities. So in the case of the debt ceiling situation, holistic leadership means, at the least, Biden would not simply put up his hands and refuse to negotiate over spending. He could acknowledge that Republicans have a point about the nation’s soaring debt load. McCarthy and his party might recognize they cannot just slash spending. Together they could achieve greater success by developing an integrative plan that cuts costs, increases taxes and raises the debt ceiling.

2. Champion a long-term vision over short-term goals

What we call “short-termism” plagues America’s politics. Leaders face pressure to demonstrate immediate results to voters. Biden and McCarthy both have strong incentives to focus on a short-term victory for their side with the presidential and congressional elections coming soon. Instead, long-term thinking can help leaders with competing agendas.

In a 2015 study, Natalie Slawinski and Pratima Bansal studied executives at five Canadian oil companies who were dealing with tensions between keeping costs low in the short term while making investments that could mitigate their industry’s environmental impact over the long run. The two scholars found that those who focused on the short term struggled to reconcile the two competing forces, while long-term thinkers managed to find more creative solutions that kept costs down but also allowed them to do more to fight climate change.

Likewise, if Biden and McCarthy want to avert a financial crisis and leave a lasting legacy, they would benefit from focusing on the long term. Finding points of connection in this shared long-term goal, rather than stressing their significant differences about how to get there, can help shift away from their standoff and toward a solution.

3. Be adaptive, not assured

Voters often praise political leaders who act swiftly and with confidence and self-assurance, particularly at a moment of economic uncertainty.

Yet finding a creative solution to America’s greatest challenges often requires leaders to put aside the swagger and adapt, meaning they take small steps to listen to one another, experiment with solutions, evaluate these outcomes and adjust their approach as needed.

In a study of business decisions at a Fortune 500 technology company, I spent a year following the senior management teams in charge of six units – each of which had revenues of over $1 billion. I found that the team leaders who were most innovative tended to be good at adaptation. They constantly explored whether they had made the right investment and made changes if needed.

Small steps are also necessary to build unlikely relationships with political foes. In his 2017 book, “Collaborating With the Enemy,” organizational consultant Adam Kahane describes how he facilitated workshops to help former enemies take small steps toward reconciliation, such as in South Africa at the end of apartheid and in Colombia amid the drug wars. Such efforts helped South Africa become a successful multiracial democracy and Colombia end decades of war with a guerrilla insurgency.

two white men are seen shaking hands and smiling with other people who's backs are turned
Former Democratic Gov. Phil Bredesen, second from left, and former Republican Gov. Bill Haslam, right, have built a good relationship since leaving office despite their political differences.
AP Photo/Mark Humphrey

This kind of leadership requires small steps toward connection rather than large political leaps. It also requires that both sides let go of their positions and consider where they are willing to compromise.

Biden and McCarthy could learn from two former Tennessee governors, Democrat Phil Bredesen and Republican Bill Haslam. Though they oppose each other on almost every political issue, including gun control, the two former leaders have built a constructive relationship over the years. Rather than tackle the big divisive issues, they started with identifying the small points where they agreed with each other. Doing so led them to build greater trust and continue to look for connections.

So when a gunman killed six people at a school in Nashville recently, the two former governors were able to move beyond political finger-pointing and focus on how their respective parties could work together on meaningful gun reform.

Of course, it’s easier to do this once you’re out of office and the pressure from voters and parties goes away. And although current Tennessee Gov. Bill Lee agreed on the need for gun reform, his fellow Republicans in the state Legislature balked.

A long shot, but …

And that’s why I know this is a long shot. The two main political parties are as polarized as ever. The odds of a breakthrough that leads to anything more than a last-second deal that kicks the debt ceiling can down the road remain pretty low – and even that seems in doubt.

But this is about more than the debt ceiling. The U.S. faces a long list of problems big and small, from high inflation and a banking crisis to the war in Ukraine and climate change.

Americans need and deserve leaders who will tackle these issues by working together toward a more creative outcomes.

The Conversation

Wendy K. Smith does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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TikTok Fears Point To Larger Problem: Poor Media Literacy In The Social Media Age

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Tiktok is not the only social media app to pose the threats it’s been accused of. picture alliance via Getty Images

The U.S. government moved closer to banning the video social media app TikTok after the House of Representatives attached the measure to an emergency spending bill on Apr. 17, 2024. The move could improve the bill’s chances in the Senate, and President Joe Biden has indicated that he will sign the bill if it reaches his desk.

The bill would force ByteDance, the Chinese company that owns TikTok, to either sell its American holdings to a U.S. company or face a ban in the country. The company has said it will fight any effort to force a sale.

The proposed legislation was motivated by a set of national security concerns. For one, ByteDance can be required to assist the Chinese Communist Party in gathering intelligence, according to the Chinese National Intelligence Law. In other words, the data TikTok collects can, in theory, be used by the Chinese government.

Furthermore, TikTok’s popularity in the United States, and the fact that many young people get their news from the platform – one-third of Americans under the age of 30 – turns it into a potent instrument for Chinese political influence.

Indeed, the U.S. Office of the Director of National Intelligence recently claimed that TikTok accounts run by a Chinese propaganda arm of the government targeted candidates from both political parties during the U.S. midterm election cycle in 2022, and the Chinese Communist Party might attempt to influence the U.S. elections in 2024 in order to sideline critics of China and magnify U.S. social divisions.

To these worries, proponents of the legislation have appended two more arguments: It’s only right to curtail TikTok because China bans most U.S.-based social media networks from operating there, and there would be nothing new in such a ban, since the U.S. already restricts the foreign ownership of important media networks.

Some of these arguments are stronger than others.

China doesn’t need TikTok to collect data about Americans. The Chinese government can buy all the data it wants from data brokers because the U.S. has no federal data privacy laws to speak of. The fact that China, a country that Americans criticize for its authoritarian practices, bans social media platforms is hardly a reason for the U.S. to do the same.

The debate about banning TikTok tends to miss the larger picture of social media literacy.

I believe the cumulative force of these claims is substantial and the legislation, on balance, is plausible. But banning the app is also a red herring.

In the past few years, my colleagues and I at UMass Boston’s Applied Ethics Center have been studying the impact of AI systems on how people understand themselves. Here’s why I think the recent move against TikTok misses the larger point: Americans’ sources of information have declined in quality and the problem goes beyond any one social media platform.

The deeper problem

Perhaps the most compelling argument for banning TikTok is that the app’s ubiquity and the fact that so many young Americans get their news from it turns it into an effective tool for political influence. But the proposed solution of switching to American ownership of the app ignores an even more fundamental threat.

The deeper problem is not that the Chinese government can easily manipulate content on the app. It is, rather, that people think it is OK to get their news from social media in the first place. In other words, the real national security vulnerability is that people have acquiesced to informing themselves through social media.

Social media is not made to inform people. It is designed to capture consumer attention for the sake of advertisers. With slight variations, that’s the business model of all platforms. That’s why a lot of the content people encounter on social media is violent, divisive and disturbing. Controversial posts that generate strong feelings literally capture users’ notice, hold their gaze for longer, and provide advertisers with improved opportunities to monetize engagement.

There’s an important difference between actively consuming serious, well-vetted information and being manipulated to spend as much time as possible on a platform. The former is the lifeblood of democratic citizenship because being a citizen who participates in political decision-making requires having reliable information on the issues of the day. The latter amounts to letting your attention get hijacked for someone else’s financial gain.

If TikTok is banned, many of its users are likely to migrate to Instagram and YouTube. This would benefit Meta and Google, their parent companies, but it wouldn’t benefit national security. People would still be exposed to as much junk news as before, and experience shows that these social media platforms could be vulnerable to manipulation as well. After all, the Russians primarily used Facebook and Twitter to meddle in the 2016 election.

Media literacy is especially critical in the age of social media.

Media and technology literacy

That Americans have settled on getting their information from outlets that are uninterested in informing them undermines the very requirement of serious political participation, namely educated decision-making. This problem is not going to be solved by restricting access to foreign apps.

Research suggests that it will only be alleviated by inculcating media and technology literacy habits from an early age. This involves teaching young people how social media companies make money, how algorithms shape what they see on their phones, and how different types of content affect them psychologically.

My colleagues and I have just launched a pilot program to boost digital media literacy with the Boston Mayor’s Youth Council. We are talking to Boston’s youth leaders about how the technologies they use everyday undermine their privacy, about the role of algorithms in shaping everything from their taste in music to their political sympathies, and about how generative AI is going to influence their ability to think and write clearly and even who they count as friends.

We are planning to present them with evidence about the adverse effects of excessive social media use on their mental health. We are going to talk to them about taking time away from their phones and developing a healthy skepticism towards what they see on social media.

Protecting people’s capacity for critical thinking is a challenge that calls for bipartisan attention. Some of these measures to boost media and technology literacy might not be popular among tech users and tech companies. But I believe they are necessary for raising thoughtful citizens rather than passive social media consumers who have surrendered their attention to commercial and political actors who do not have their interests at heart.

The Conversation

The Applied Ethics Center at UMass Boston receives funding from the Institute for Ethics and Emerging Technologies. Nir Eisikovits serves as the data ethics advisor to Hour25AI, a startup dedicated to reducing digital distractions.

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How Trump Is Using Courtroom Machinations To His Political Advantage

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Former President Donald Trump sits in a New York courtroom as jury selection proceeds in one of his criminal cases. Jabin Botsford/Pool Photo via AP

The second week is wrapping up in former President Donald Trump’s first criminal trial on charges from the state of New York related to paying hush money to an adult film star. So far, the jury has been selected, but no other proceedings have begun.

The Conversation U.S. interviewed Tim Bakken, a former New York prosecutor and now a legal scholar teaching at West Point, and Karrin Vasby Anderson, a political communication expert at Colorado State University, to find out what overarching themes they have observed, both in the courtroom and outside it.

Is this trial proceeding normally?

Bakken: It seems like an ordinary trial, but it is an extraordinary trial underneath if we really look at some of the details. The first thing that struck me was on Day 1, when Judge Juan Merchan questioned 96 jurors. Fifty of them said they could not be fair to Trump. On Day 3, 48 of that day’s 96 said the same thing.

That does not bode well for a defendant in a jurisdiction where Democrats outnumber Republicans 9 to 1.

In addition, the judge did not make an accommodation to alleviate the possible difficulty that such antagonism represents. If 50 out of 96 people raised their hands and said they couldn’t be fair because of the color of the defendant’s skin, that would signal a problem. In a trial, that problem is addressed through allowing the defense to ask more questions of the jurors and to get more peremptory challenges, which allows them to dismiss a juror without having to explain why.

There are 10 already allotted because this is a low-level felony trial. In other cases in New York, you would have 20, such as a murder case. And the judge has the discretion to increase that number. He could have done that in this case, but he didn’t.

An artist's rendering of a courtroom scene.
A courtroom sketch depicts Judge Juan Merchan, Donald Trump, prospective jurors and other court and legal personnel.
Christine Cornell via AP Pool

How fast is the judge moving?

Bakken: Merchan has told Trump he may not be able to attend his child’s high school graduation, scheduled for May 17. That indicates that the judge is moving apace.

But in many cases in New York – on Fridays, for example, when a defendant or defense lawyer or prosecutor is Muslim or Jewish – some or all of the entire day will be taken off by the judge. There won’t be any trial.

I think the judge will let Trump attend the high school graduation, because otherwise he might seem to treat Trump a little bit differently than other defendants.

What is most important for the public to understand so far?

Anderson: I think it’s important for the casual observer, who might wonder whether being on trial for a felony was hurting Trump’s presidential campaign, to understand that he’s strategically using the trial to his advantage.

Voters following the trial in the mainstream media are hearing from experts that the legal proceedings are progressing relatively normally and the system is standing up under the unprecedented circumstances of this case.

But in the conservative media sphere, Trump is using the trial as a campaign strategy pretty effectively, stoking his base’s fears and quoting pundits and hosts from Fox News, Newsmax and OAN who echo his framing of the trial.

Trump has said the requirement to be in the courtroom every day is harming his ability to campaign. The Guardian reported, however, that while he is in court, his “Truth Social page is putting up new posts minute by minute.”

If you look at those posts, you see a series of complaints about the case interspersed with pro-Trump campaign messaging and posts telling voters to be afraid of what he says is rampant crime under Joe Biden’s tenure as president.

Individually, the campaign posts are consistent with Trump’s usual messaging. But when Trump layers messages about crime with others about an allegedly corrupt justice system, the goal is to not only intensify voters’ fears but also tell voters they should be afraid because powerful people are coming for him and are going to come after regular people next.

Trump is also charging that the process of his trial is undermining democracy. He posted a video in which his close adviser Stephen Miller urged, “So when you hear them say that democracy is on trial, they’re right. Democracy is on trial. Freedom is on trial. The rule of law is on trial. … If Donald Trump is convicted then all of these principles are convicted and destroyed with him.”

This sets up a catch-22. If Trump is not convicted, he gets to say he was exonerated. If he is convicted, then he just pivots to this charge that a normally operating courtroom is what’s undermining justice and democracy – not his actions or the actions of his campaign.

If Trump was just posting on his social media account, it wouldn’t be nearly as powerful. But Fox News, OAN and Newsmax are really functioning as his campaign surrogates. Since much of the country is paying attention to that media space, that’s a really consequential campaign strategy. It’s savvy of him to use the court proceedings in this way.

A man walks out a door that is guarded by a police officer.
Donald Trump walks outside during a break in trial proceedings.
Mark Peterson/Pool Photo via AP

Is any of what Trump is saying a fair criticism or statement?

Bakken: The New York district attorney decided to prosecute Trump in this case. He didn’t have to. It seems unquestionable that Trump filed or made false business documents. That’s a misdemeanor. And in this instance, the misdemeanor statute of limitations had run out by the time the district attorney issued the charges. But the prosecutor chose to say the actions were related to another crime, which makes them felonies.

Anderson: The charges also have context. Maybe no other businessperson would be prosecuted for this filing of paperwork. But that’s only half of the problem. Donald Trump would not be in trouble for filing this paperwork if he hadn’t done it to allegedly illegally influence an election.

I think that’s actually why Trump is so aggressively pushing his narrative of “election interference.” He knows that the charges against him are really about breaking campaign finance laws and his conduct in an election more than a particular business filing.

Bakken: In the last week or so, it came out that Merchan had contributed to Democratic candidates, including President Biden, in the past. It was reportedly a total of US$35, which seems very minimal. But one of New York’s legal ethics leaders, Stephen Gillers, a professor at New York University, said it is a judicial ethics violation, though he said it would likely only merit a warning and not removal from the case.

What does the trial mean so far in terms of politics or the 2024 presidential election?

Anderson: I think the media has to report on the facts on all sides of this trial. But I worry that it may not actually be as consequential as maybe people who are following it think that it will be, because many undecided voters have opted out of political news altogether.

Bakken: The trial emphasizes an extraordinary level of political antagonism between the parties, and also an extraordinary reluctance of people who are not inclined toward party politics to tune out and protect themselves.

The people who are tuning out might not be strong advocates, politically, for one side or the other but the people who would be neutral if they collected all the information. They could be the moderators, the good-faith, middle-minded people who can help bridge the gap between the political combatants.

The Conversation

The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

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South Korean President Yoon Faces Foreign Policy Challenges After The National Assembly Election

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South Korea’s pesident faces political woes. Kim Hong-Ji/AFP via Getty Images

South Korea’s parliamentary election of April 10, 2024, was widely seen as a referendum on President Yoon Suk Yeol’s first two years in office.

That being the case, the nation collectively expressed its strong disapproval.

With a relatively high turnout of 67%, voters handed Yoon’s conservative People’s Power Party defeat, with its share of the 300-seat National Assembly dropping from 114 to 108.

The opposition Democratic Party retained its large majority in the National Assembly, winning 175 seats and maintaining control in the populous metropolitan areas of Seoul, Incheon and Gyeonggi provinces. Voters also delivered a disappointing outcome for most third-party candidates, the exceptions being the Rebuilding Korea Party, which campaigned as more combative opposition to the DP, and the New Reform Party, which broke away from the ruling PPP earlier this year.

As a political scientist with a focus on East Asia and international affairs, I believe the election results will have ramifications on Yoon’s foreign and domestic agenda during the remainder of his term.

Growing domestic pressure

Yoon had hoped the election would end the political gridlock that has stymied his first two years as president.

Throughout that time, the opposition has held a legislative majority. Subsequently, Yoon’s government has seen key parts of its agenda for education, labor and pension reforms blocked. Yoon has also vetoed multiple bills passed by the opposition-controlled legislature.

But the election saw the DP and other opposition parties amass 192 seats, just short of a veto-proof, two-thirds majority. As such, President Yoon again faces a divided government for the remainder of his term. In fact, he will be the only South Korean president whose party has failed to control the National Assembly at any time during the five-year presidential term.

A better parliamentary outcome for Yoon’s party would have bolstered the chances for the government’s legislative agenda on pressing domestic issues, such as addressing the country’s declining birthrate, high inflation and expanding medical student enrollment, as well as relaxing business regulations.

Instead, the Yoon government is more likely to be on the defensive after the election. Opposition parties have vowed to investigate alleged stock manipulation involving first lady Kim Keon Hee and probe former Defense Minister Lee Jong-sup over claims that he influenced an earlier report into the drowning death of a Korean marine.

Though Yoon retains veto power, there is now growing uncertainty over whether ruling PPP assembly members will continue defending the president’s actions if and when the two probes move forward.

Meanwhile, President Yoon’s prime minister, Han Duck-soo, announced his resignation after the assembly election. The National Assembly can vote against the president’s nominee to replace him, which may compel Yoon to pick a candidate acceptable to the opposition parties.

A trickier foreign policy climate

Under South Korea’s political system, the presidency has greater leeway in national security and foreign affairs than in domestic policy.

As such, the Yoon government will likely continue its foreign policy of expanding trilateral partnerships with the U.S. and Japan, building ties with NATO and striving to be a “global pivotal” state in the Asia-Pacific region.

During his first two years in power, Yoon has generally aligned South Korea closer to the West, though he has also been careful to avoid direct confrontation with China and Russia – both of which are geographic neighbors and trade partners.

While the opposition-controlled National Assembly has, to date, been generally supportive of the Yoon government’s attempts to strengthen ties with the U.S. – a policy that remains popular among the South Korean public – the same cannot be said about its attempts to bolster relations with Japan.

In particular, the Democratic Party and the Rebuilding Korea Party have criticized the prospect of a closer partnership with Japan – whether through military exercises or intelligence sharing – mainly due to Korea’s experiences under Japanese colonial rule.

And despite being generally welcoming of ties with the West, the two opposition parties are more cautious than the Yoon government when it comes to engaging in geopolitical rivalry. Specifically, Democratic Party leader Lee Jae-myung warned during the recent election campaign that South Korea should not become involved in the Russia-Ukraine war or China-Taiwan tensions.

The opposition might not directly stop Yoon from pursuing his foreign policy, but they are likely to pressure the president to pay attention to domestic political issues.

Moreover, opposition parties will be pushing the Yoon government to demonstrate what diplomatic “wins” the country has secured through its partnership with Japan and the United States. Notably, if the point of strategic partnership with the United States and Japan is to ensure security in East Asia, some voters may legitimately ask why it has failed to deter North Korea’s continued military provocations.

If the Yoon government cannot demonstrate diplomatic successes, opposition parties are likely to frame his foreign policy as one-sided “subservient diplomacy.”

Yoon has three years to show that his foreign policy has paid dividends; South Korea’s next presidential election is in the spring of 2027.

How successfully the president can navigate the domestic and international constraints exacerbated by the results of the parliamentary election could determine whether he exceeds the political expectations of a president facing a divided government or encounter, as some predict, an early “lame-duck presidency.”

The Conversation

Jong Eun Lee does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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