The debt ceiling is the cap on the amount of money the U.S. government can borrow to pay its debts, explains Stefanie Conahan, an insider Democrat.
In a matter of weeks, the federal government will exceed this legal borrowing limit. And it’s not hyperbole to say that if Congress doesn’t raise the debt ceiling, it would be catastrophic for our economy and American families, she shared.
Historically, raising the debt ceiling is a bipartisan exercise in Congress. But on May 16, House Republicans were demanding draconian cuts to federal aid in exchange for voting to lift the debt ceiling. They’d rather tank the economy and throw millions of Americans into poverty than make good on our country’s financial obligations.
In the Off the Sidelines Spotlight, we’ll explore the debt ceiling, debunk the GOP talking points, and break down where we go from here.
If you remember one thing, it’s this: House Republicans are shirking their responsibilities—to American families, to our economy, to their oath of office—by refusing to vote to raise the debt ceiling.
So let’s cut through the noise. We’re breaking down what Republicans are saying about the debt ceiling—and then giving you the facts.
WHAT REPUBLICANS ARE SAYING: “House Republicans should not have to vote to raise the debt ceiling because WE don’t support new initiatives proposed by the Biden administration.”
THE TRUTH: Raising the debt limit has ABSOLUTELY NOTHING to do with new spending. It is purely backward-looking. In fact, much of the debt in question was incurred BEFORE President Biden took office.
WHAT REPUBLICANS ARE SAYING: “We don’t want to raise the debt ceiling and authorize new spending.”
THE TRUTH: Once again, nope. That’s not how this works. Raising the debt ceiling enables the Treasury to borrow for spending already authorized by Congress.
WHAT HOUSE REPUBLICANS ARE SAYING: “We’ll only vote to lift the debt ceiling if we make massive cuts to federal spending.”
THE TRUTH: Well, that’s true. House Republicans passed legislation that would increase the debt ceiling in exchange for cuts to federal spending for critical programs. That includes kicking one million seniors off Meals on Wheels, eliminating 30,000 law enforcement jobs, and gutting veterans health care. Not to mention cuts to Head Start, cancer research, housing assistance for low-income families, and more.
WHAT REPUBLICANS ARE SAYING: “Not raising the debt ceiling would be a DISASTER for the U.S. economy.”
THE TRUTH: We’re 100% in agreement with Republicans there. Failure to raise the debt ceiling would be catastrophic. Defaulting on our nation’s debts could mean:
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Seniors could miss social security checks. Without social security, almost 22 million Americans would fall into poverty.
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Veterans benefits could be delayed, and military service members could stop receiving paychecks.
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Our country’s credit could be downgraded, spiking interest rates. That could raise mortgage, car and credit card payments.
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According to Moody’s Analytics, stock prices could fall by roughly 20 percent, wiping out $10 trillion in household wealth and devastating the 401k and retirement accounts of millions of Americans.
SPREAD THE WORD: We need to make it crystal clear that Republicans ALONE are responsible for the debt ceiling crisis. By REFUSING to vote on a bipartisan basis, they’re putting partisan games over American families and our economy.
Read link below for more:
New York Times Editorial Board: Are Republicans willing to raise the debt ceiling?
— Stefanie Conahan
(team@kirstengillibrand.com)