PRESS RELEASE: STATEMENT: GOP PUTTING MIDDLE-CLASS AMERICANS AT RISK BY BLOCKING DEBT CEILING INCREASE

FOR IMMEDIATE RELEASE 
September 27, 2021

Contact:
Maddy McDaniel, Communications Director

[email protected] or 914-471-7716

STATEMENT: GOP PUTTING MIDDLE-CLASS AMERICANS AT RISK BY BLOCKING DEBT CEILING INCREASE

Republican Hypocrisy Reaches a New Extreme as GOP Threatens Pushing U.S. Economy Into Recession

Moody’s Chief Economist Mark Zandi: Failing to Raise the Debt Ceiling Would Cost 6 Million Jobs & Nearly Double Unemployment

WASHINGTON, D.C. — Today, Republicans in the U.S. Senate blocked a bill to fund the United States government and lift the debt ceiling, pushing the United States closer to defaulting on its debt and placing middle-class Americans and the entire economy at risk.

Republicans’ obstruction of the measure comes amid mounting evidence from economists and experts, including Fed Chair Jerome Powell, that a failure to suspend or raise the debt limit would result in catastrophic damage to the economy, potentially mirroring the 2008 financial crisis. One financial analyst likened it to “financial Armageddon.”

Invest in America Action’s Communications Director Maddy McDaniel made the following statement:

“Republicans are making it clear: they care more about playing irresponsible political games than protecting middle-class Americans from economic catastrophe. Ensuring the United States doesn’t default on its debt — as both parties have done almost 80 times in the past since 1960 — has been and should remain a bipartisan effort.

“Mitch McConnell’s hypocrisy could bring down the entire economy and harm hard-working Americans for generations to come. It’s time for McConnell and Republicans to stop playing games and start putting middle-class Americans ahead of cynical party politics.”

According to a new report from Moody’s Analytics Chief Economist Mark Zandi, failing to raise the debt limit would:

  • Cost the U.S. economy over 6 million jobs.

  • Lead real GDP to decline by over 4 percent.

  • Send unemployment skyrocketing back up to 9 percent.

  • Cause stock prices would be cut almost in one-third at the worst of the selloff, wiping out $15 trillion in household wealth.

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 after 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.

About Invest in America

Invest In America is a national rapid response operation advocating for robust public investment to rescue the economy from the COVID crisis and create prosperity for the future, and to fight back against fear-mongers who use deficit concerns as a scapegoat to starve American communities and businesses of resources.

The operation consists of two components: Invest in America, the charitable and public education arm, which is a fiscally sponsored project of Economic Security Project funded by the William and Flora Hewlett Foundation and Economic Security Project co-chair Chris Hughes; and Invest in America Action, the advocacy and social welfare arm, which is a fiscally sponsored project of Economic Security Project Action funded by Chris Hughes and the Omidyar Network.

Learn more at InvestInAmericaNow.com and @InvestNowUSA, and InvestinAmericaProject.com.

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