Democrats warn of consequences blocking national debt
2023.02.03 13:48
Democrats warn of consequences blocking national debt
By Kristina Sobol
Budrigannews.com – In speeches delivered at the US Capitol and appearances on cable news programs, Democrats have expressed concern that the dispute over the debt ceiling poses a threat to the economy and financial markets.
However, if their fundraising appeals are any indication, they also see political value in an ongoing conflict that, if not resolved, will prevent the US government from paying its debts.
The emails to supporters, some of which included economics primers with footnotes, have sought to raise both funds and anxiety.
The United States runs the risk of going into debt default if Congress does not raise the ceiling by June. This week, House Speaker Kevin McCarthy and President Joe Biden held their first talks regarding the debt limit without resolving the impasse.
In his request for funds, Senate Majority Leader Chuck Schumer stated, “I’ll never try to scare you, but I need to be frank.”
After that, he wrote a section that talked about how hard it was to get a political base excited about an obscure economic debate: The debt ceiling is what?
According to Pundit Analytics, which monitors emails, Democrats have sent 22 emails highlighting the standoff during a typically slow period for fundraising. Facebook (NASDAQ:) posts of candidates and advertisements for elected officials on social media.
The appeals come from progressive outspoken senators Elizabeth Warren and Representative Alexandria Ocasio-Cortez, as well as moderate senators Sherrod Brown of Ohio and Jon Tester of Montana. They span the political spectrum.
The last two, who are running for reelection in states with a Republican majority in 2024, have warned their supporters that House Republicans will use the debt-ceiling dispute to cut popular benefit programs like Medicare and Social Security.
Although Senator Tim Scott of South Carolina has framed the debate as a fight to rein in government spending in an email to supporters, Republicans have largely avoided the topic in their fundraising appeals.
Separate from any discussion of budget reductions, Democrats are calling for a drama-free increase to the debt ceiling. If the dispute does not get resolved, traders and investors may lose faith that Congress will agree to pay for debts the federal government has already incurred, which could result in a sharp decline in financial markets.
Instead of simply asking for campaign funds, many of the emails focus on explaining a complicated Washington procedural dispute with significant economic repercussions, as opposed to emotionally charged hot-button topics like immigration or abortion.
“If you’ve been asking, “What is the debt ceiling?” Why is it being talked about? And what relevance does it have to me?’ then you should read this email! reads a note from Ocasio-Cortez’s campaign dated January 20.
A Q&A section on the debt ceiling is included in the message, and four footnotes with hyperlinks direct readers who are interested to additional information. Included as well: links to make purchases or donate money.
A footnote was also utilized by Michigan Democrat and fellow progressive Representative Rashida Tlaib in her message.
The implications of the United States exceeding its credit limit are outlined in an email sent by Schumer on January 26. He warns that the world economy would be shaken and there could be a recession if the country does not pay its debts.
But we really don’t know. He wrote, “because it has never, ever happened.” He concludes by arguing that House Republicans are attempting to “extort cuts to Social Security, Medicare, and more” through the debt ceiling dispute.
Regarding the debt ceiling, Republicans are more internally divided. In exchange for their votes to raise the debt ceiling, some of the most conservative members are preparing for a big fight by demanding significant spending reductions.
In an effort to contain some of the most divisive statements, McCarthy has stated that he is confident that a settlement with Biden will be reached.
Privately, some moderate Republicans have expressed concern that party factions are being too lenient regarding the debt ceiling.
Scott, a Republican senator from South Carolina who has been linked to running for president in 2024, attempted to use the issue to criticize Democrats for refusing to negotiate budget cuts.
In an email appeal, Scott stated, “The Democrats’ plan to ELIMINATE the debt ceiling will be like giving Biden a blank check to spend YOUR MONEY.”
