WASHINGTON, DC — The extreme MAGA House Majority is threatening to manufacture a catastrophic default crisis and economic collapse. To hold the economy hostage, the House passed a long list of hugely unpopular and extreme ransom demands that promise pain for millions of average Americans including veterans, seniors, students, children, workers, and the food insecure. They voted to ship 100,000 high paying manufacturing jobs overseas while going out of their way to protect wealthy tax cheats. The MAGA Majority’s proposed cuts are untenable, unworkable, and unserious, especially as they leave in place costly tax breaks for billionaires and big corporations. With the nation projected to run out of money as early as June, Accountable.US’ Cost Of MAGA Default’ project continues to underscore the catastrophic consequences of a MAGA default that grows closer by the day.
Today In Focus: MAGA Default Would Compromise National Security and Threaten the Income of Millions of Service Members
- Treasury Secretary Janet Yellen Said It Would Be “‘Catastrophic'” If The U.S. Defaults On Its Debt, Making It “‘Unlikely That The Federal Government Would Be Able To Issue Payments To Millions Of Americans, Including Our Military Families And Seniors Who Rely On Social Security.'” “Treasury Secretary Janet Yellen thinks she can use extraordinary measures to pay the bills until June 5. If the U.S. defaults, it would be ‘catastrophic,’ she said Tuesday at a National Association of Counties conference in Washington. ‘On top of that, it is unlikely that the federal government would be able to issue payments to millions of Americans, including our military families and seniors who rely on Social Security,’ Yellen said.” [USA Today, 02/15/23]
- The White House Has Stated That The “Basic Functions Of The Federal Government” Would Be Hindered, Affecting National Defense, National Parks, The Public Health System, And “Countless” Other Functions. “The basic functions of the Federal government—including maintaining national defense, national parks, and countless others—would be at risk. The public health system, which has enabled this country to react to a global pandemic, would be unable to adequately function.” [The White House, 10/06/21]
- The Federal Government Pays The Salaries Of About 1.4 Million Active-Duty Military Personnel. “There are many other functions of the Federal government that we often take for granted and that would be in peril after a default. For example, the Federal government keeps our country safe by paying the salaries of 1.4 million active duty military personnel and their families.” [The White House, 10/06/21]
- The Federal Government’s Other Military Outlays Include “Maintenance Of Equipment, The Procurement Of Supplies, And Other Support Activities.” “The deployment of personnel, the maintenance of equipment, the procurement of supplies, and other support activities would risk being frozen after a default, hampering the defense of the country at a time when there are ample threats to national security.” [The White House, 10/06/21]
- Counter-Terrorism And Intelligence Measures Could Be Undermined By A Default. “The same holds for expenses related to counter-terrorism and intelligence measures, which could leave America more vulnerable to potential threats.” [The White House, 10/06/21]
BACKGROUND: Accountable.US’ ‘Cost of MAGA Default’ project puts a daily spotlight on specific harms the MAGA Majority’s default plan and brinkmanship will bring for Main Street and Wall Street alike – from tanking markets, frozen credit, lost jobs, disruptions to critical benefits like Social Security, and soaring interest rates on everything from car loans to mortgages. While the MAGA Majority claims they are holding the economy hostage over supposed debt ‘concerns,’ they insist on harmful cuts – crafted by the far-right House Freedom Caucus – aimed at average Americans while protecting and even expanding debt ballooning tax breaks for billionaires and big corporations that profiteer and ship U.S. jobs overseas. The clock is ticking. The MAGA majority should stop playing dangerous political games with American lives and the economy and responsibly pass a clean bill that allows the nation to pay its bills. The sooner they do, the less damage will be inflicted on Americans of all walks of life.