PRESS RELEASE: MCCONNELL’S DEBT LIMIT HYPOCRISY RISKS “FINANCIAL ARMAGEDDON” 

FOR IMMEDIATE RELEASE 
September 20, 2021

Contact:
Maddy McDaniel, Communications Director

[email protected] or 914-471-7716

MCCONNELL’S DEBT LIMIT HYPOCRISY RISKS “FINANCIAL ARMAGEDDON” 

Sen. Mitch McConnell: “They will not get Senate Republicans’ help in raising the debt limit”
Flashback: McConnell voted to raise the debt limit 32 times over his career

U.S. Treasury Secretary Janet Yellen: If Congress fails to suspend debt limit, “We would emerge from this crisis a permanently weaker nation” 

Moody’s Analytics’ Mark Zandi Says Failing to Raise the Debt Ceiling Would Be “Financial Armageddon” 

Senate Minority Leader Mitch McConnell is doubling down on his debt ceiling hypocrisy, threatening to hold disaster relief funding hostage in order to obstruct suspension of the debt limit. This is despite the fact that the GOP has raised or suspended the debt ceiling under Republican presidents 10 times in the past 20 years. In fact, McConnell himself has voted to raise the debt limit 32 throughout his career.

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

  • Senate Minority Leader Mitch McConnell has voted to raise the debt limit 32 times over his career.

  • Between 2017 and 2019, a 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 after passing 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.

Treasury Secretary Janet Yellen outlined the risks of failing to raise the debt limit in an op-ed for the Wall Street Journal

“The U.S. has never defaulted. Not once. Doing so would likely precipitate a historic financial crisis that would compound the damage of the continuing public health emergency. Default could trigger a spike in interest rates, a steep drop in stock prices and other financial turmoil. Our current economic recovery would reverse into recession, with billions of dollars of growth and millions of jobs lost. 

“We would emerge from this crisis a permanently weaker nation […] It would also make America a more expensive place to live, as the higher cost of borrowing would fall on consumers. Mortgage payments, car loans, credit card bills—everything that is purchased with credit would be costlier after default.”

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