As discussions regarding a deal to raise the nation’s debt limit continue, GOP politicking has prevented the talks from moving forward. Every day progress toward a compromise stalls, the United States speeds closer and closer to defaulting on America’s debt. From massive job losses to senior citizens having to choose between paying rent and buying food, the consequences of a default are grim.
“As we continue down this reckless path, some in Washington seem giddy at the prospect of a default—that’s unconscionable,” Congressman Jim Himes (CT-4) said. “Are they actually hoping to benefit politically by causing millions of people to lose their jobs, forcing senior citizens who depend on Social Security checks to go without food, and pushing interest rates—for everything from college loans to new home mortgages—into the stratosphere? We simply cannot let this happen.”
Here’s a review of this week’s warning signs that show failing to raise the debt limit would send the American economy into a death spiral.
Tuesday
President Obama announced that the government may not be able to send the Social Security payment seniors are expecting August 3 if Congress fails to raise the debt limit.
Wednesday
Federal Reserve Chair Ben Bernanke explained to the House Committee on Financial Services that failing to raise the debt limit would cause people to lose their jobs.
Wednesday
Moody’s Investor Service announced it would put the United States government’s bond rating up for review, making good on a June promise to reconsider the nation’s credit-worthiness if Congress didn’t make sufficient progress toward a debt-ceiling deal by mid-July. Bernanke told the Senate Committee on Banking, Housing, & Urban Affairs that not raising the debt ceiling would be “a calamitous outcome.”
Yesterday
A Standard & Poor’s official suggested the agency will likely downgrade the nation’s credit rating if the debt ceiling is not raised and the U.S. fails to meet any of its financial obligations as a result, regardless of whether or not the missed payment constitutes a bond default. For instance, if a failure to raise the debt limit prevents the U.S. government from issuing August Social Security checks, S&P will downgrade the nation’s rating.
Today
Will the GOP keep playing politics with American jobs, or will they come to the table and negotiate like adults to protect America’s future?