‘Catastrophe’ would befall economy with national default, warn Colorado Democrats – The Durango Herald

Republicans have been accused of politicizing a historically bipartisan process

Chimneys used inside the U.S. Capitol send smoke into the night sky on Jan. 6, 2023, as House members prepare for a 14th vote on the selection of a speaker. (Jennifer Shutt/State Newsroom)

As talks on raising the U.S. debt limit continue in Congress after the country hit the limit last week, Colorado’s federal representatives have expressed differing views on how the government should respond.

The US Treasury Department is already using extraordinary measures to keep the government running, but a divided Congress will need to reach a deal to avoid a debt default before June. Debates are expected to be particularly tense over the issue of President Kevin McCarthy’s concessions to far-right members of his party to win the presidential election.

If Congress does not reach an agreement before the default date, which is expected in early June, economists have warned it could have drastic consequences for Americans and around the world. The Treasury would no longer have the authority to borrow to pay the country’s bills in full and on time, something that had never happened before in the country’s history.

“Global financial markets and the economy would be turned upside down, and even if resolved quickly, Americans would be paying for this flaw for generations, because global investors would be right to believe that the federal government’s finances were politicized and that one day to where they wouldn’t have to pay what they owe when they owe it,” said Moody’s Analytics Chief Economist Mark Zandi and Assistant Director Bernard Yaros in a September 2021 report that came out during the latest debt limit round.

Lire Aussi :  Dow Jones Futures Fall, U.S. Markets Closed For MLK Holiday; Tesla's Big Transition

U.S. Rep. Diana DeGette, a Democrat from Denver, said in a town hall with reporters that right-wing Republicans don’t want to “exercise fiscal responsibility.” He said the debt ceiling was something people on both sides of the aisle had always agreed on until Tea Party Republicans fought to raise it in 2011, as he said MAGA Republicans are doing now.

DeGette said he is “disturbed” by the rhetoric he has heard from the far right and how a default could “wreak havoc” on the country’s economy.

“If people didn’t like the inflation we’ve had in the last year or two, they’re really not going to like it if our economy falls apart because the Republicans on the right didn’t do the responsible thing,” DeGette said. “So I’m concerned about the tone that they’re taking and I’m also concerned about the concessions they’re trying to get out of this, because again in the past, raising the debt ceiling has never been used as a hostage. try to get other economic concessions.”

A spokesman for U.S. Rep. Joe Neguse, a Democrat from Lafayette, said the congressman believes that preserving all faith and credit in the United States is “critically important,” and therefore raising the debt ceiling as needed should continue on a unit base. .

Neguse spokeswoman Hannah Rehm said in an email: “The efforts of some to engage in political gamesmanship with the debt ceiling is dangerous, and poses a serious risk to our economy and to many Americans, including Social Security recipients, veterans , and more. “We must ensure that the government does not default on its loans, and cannot allow politicians to jeopardize the livelihoods of working families for political reasons.”

Lire Aussi :  Graduant: Entrepreneurship programmes need more men

Colorado Republican U.S. Reps. Lauren Boebert, Ken Buck and Doug Lamborn did not respond to repeated requests for comment, but all have publicly shared their views on the nation’s debt before.

Boebert, who is from Silt, tweeted asking how the country’s debt needs to rise for liberals to admit the financial situation is unsustainable. He also retweeted an interview in which Rep. Chip Roy, a Texas Republican, said Republicans have no plans to default on the national debt.

Since being in Congress, Boebert has voted against raising the nation’s debt limit several times.

Buck, who is from Windsor, said in an interview with conservative radio talk show host John Fredericks that future spending limits will be the best solution, as he said the Democrats’ spending increases over the past two years have led to high inflation and interest rates.

Buck went on in the interview to say that this is an issue that is “fundamental to what Republicans stand for” and that he doesn’t see any Republicans taking sides with Democrats when it comes to the debt ceiling.

“We’re going to raise the debt ceiling — we’re not going to take America off a cliff, but Democrats have to agree that we can’t continue to spend at the rate we’re spending now,” Buck said.

Lire Aussi :  The 3 top reasons why startups failed in 2022: study

Lamborn, who is from Colorado Springs, has voted both for and against raising the debt ceiling during his time in Congress. In a tweet from late 2021he criticized the Democrats for wanting to raise the debt ceiling.

U.S. Rep. Jason Crow, a Democrat from Centennial, said the government “obviously” needs to raise the debt ceiling as it has done on a unit basis several times before to avoid a detrimental impact on the nation’s health and recovery.

“I hear everyone’s concern about making sure we get the debt and our deficits under control, but gambling with our nation’s economy and our small businesses and our family’s financial security is not the way to do it,” Crow said. said Newsline.

U.S. Rep. Brittany Pettersen, a Democrat from Lakewood, also said raising the debt ceiling is usually a “routine” process with both parties paying for legislation that has already passed.

“Republicans are politicizing this process and holding the federal government – and the important services we all depend on – hostage,” Pettersen said in a text. devastating around the world. My colleagues across the hall need to stop putting politics on the American people.

U.S. Rep. Yadira Caraveo, a Democrat from Thornton, said Congress must find solutions to avoid the “economic catastrophe” that could result from not raising the debt ceiling.

“Failure to raise the debt limit could result in a global economic disaster that would hurt hard-working families in our community,” Caraveo said in an email.

To read more stories from Colorado Newsline, visit www.coloradonewsline.com.



Source

Leave a Reply

Your email address will not be published.

Related Articles

Back to top button