The debt ceiling is a dollar amount that Congress has set as the maximum the federal government can borrow to cover its bills. Although raising the debt ceiling is a routine job for Congress, Republicans want to use it as the power to reduce Social Security and Medicare even though doing so would have severe economic effects.
This year, House Republicans have the potential to cause 6 million job losses, $15 trillion in lost family income, the downfall of 401(k) plans, 9% unemployment, cuts to Social Security and Medicare, and a federal government unable to pay for Medicaid, food safety checks, border security, or air traffic control.
We understand if you think that sounds too weird and harsh to be true, but it’s not: Rep. Kevin McCarthy of California agreed to a demand from the most excessive members of his party that House Republicans would reject raising the debt ceiling unless Congress made spending cuts of at least $130 billion or further in the upcoming financial year, or an 8% reduction from the latest spending bill, which was just passed in December. This was done for McCarthy to be the House Speaker on his 15th attempt.
