JAMIE DIMON: REPUBLICAN BLOCK OF DEBT LIMIT INCREASE WOULD BE ‘POTENTIALLY CATASTROPHIC’

JAMIE DIMON: REPUBLICAN BLOCK OF DEBT LIMIT INCREASE WOULD BE ‘POTENTIALLY CATASTROPHIC’

CEO Dimon Joins Growing Voice of Economists & Business Leaders Sounding the Alarm on a Failure to Raise or Suspend Debt Limit

JPMorgan Chase CEO Jamie warned yesterday that a failure to raise or suspend the debt limit, which enables the U.S. government to pay its debts, would be “potentially catastrophic” for the economy.

Dimon’s statement comes the day after Republicans blocked a bill to fund the United States government and lift the debt ceiling, putting middle-class Americans at risk and pushing the economy to the brink of disaster. Despite mounting evidence from economists and experts, including Fed Chair Jerome Powell, that a failure to lift the debt ceiling would be catastrophic, Senate Minority Leader Mitch McConnell continues to oppose doing so, even after claiming that the debt ceiling “always should be” raised.

Read the full article here.

Republicans in Congress have consistently voted to raise or suspend the debt ceiling, even after costly tax cuts for the wealthy. 

  • Between 2017 and 2019a majority of GOP senators supported raising or suspending the debt ceiling three times, including after the passage of the Tax Cuts and Jobs Act which the CBO estimated would increase the deficit by $1.9 trillion.

  • Between 2001 and 2008, a majority of GOP senators supported raising the debt ceiling seven times, including tax cuts that added $5.6 trillion to the deficit.

Failing to raise the debt ceiling would be catastrophic for American families. 

  • Seniors could lose Social Security checks, putting almost 22 million Americans at risk of falling into poverty.

  • Families could lose Child Tax Credit payments.

  • Military families could suffer as the Treasury becomes unable to pay military salaries.

  • Government employees and contractors could see their pay halt, and loans to small businesses could stop.

  • Household payments on mortgages, auto loans, and credit cards could rise.

  • American corporations and small businesses could see credit markets deteriorate.

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