A group of lawmakers recently unveiled a Joint Economic Committee Democratic staff report outlining the cost of a potential default, maintaining that raising the debt limit is essential.
Senate Majority Leader Chuck Schumer (D-NY), House Democratic Leader Hakeem Jeffries (D-NY), Joint Economic Committee Chairman-Designate Martin Heinrich (D-NM), Joint Economic Committee Senior House Democrat Don Beyer (D-VA), Sen. Tina Smith (D-MN) and Rep. Gwen Moore (D-WI) recently detailed the analysis.
According to the lawmakers, a default could potentially translate to an American working their whole life and approaching retirement losing almost $20,000 out of their savings; a new homeowner could see their monthly mortgage payment increase over $150 a month or $55,000 over the life of the loan; and a family seeking to buy a new vehicle could pay almost $1,000 more for a car.
“This report shows that a Republican default crisis means real dollars coming out of American families’ wallets and savings decimated,” Schumer said. “This is not a hypothetical exercise to the millions of Americans – including veterans and seniors – who rely on the United States government for benefits, pensions, and disability. House Republicans’ approach is dangerous and destabilizing. Even the threat of a breach will raise costs on everything from car loans to mortgages.”
Jeffries said the debt ceiling needs to be raised to enable the nation to pay the bills that have already been incurred.
“A default on our nation’s debt will hurt people all throughout America in every category imaginable,” he said.