U.S. hits the debt ceiling today

Today, the United States reached its debt limit. But rather than take urgent action to protect the U.S. and global economies, "emboldened" House Republicans are refusing to suspend or raise the debt ceiling—unless Democrats agree to steep cuts to Social Security and Medicare.

Dear MoveOn member,

Today, the United States is expected to reach its debt limit.¹ But rather than take urgent action to protect the U.S. and global economies, "emboldened" House Republicans are refusing to suspend or raise the debt ceiling—unless Democrats agree to steep cuts to Social Security and Medicare.²

Treasury Secretary Janet Yellen last week warned House Speaker Kevin McCarthy, "Failure to meet the government's obligations would cause irreparable harm to the U.S. economy, the livelihoods of all Americans, and global financial stability."³

Andra, Democrats have to stand firm and reject any and all cuts to Social Security and Medicare. That's why MoveOn is launching an emergency campaign to turn up the heat on Democrats to stand strong and protect Social Security and Medicare.

Can you start a $5 monthly donation to power MoveOn's campaign to protect Social Security and Medicare for as long as it takes to win this fight?

Yes, I'll chip in monthly.

No, I'm sorry, I can't make a monthly donation.

Social Security and Medicare are lifelines for millions of Americans, especially for vulnerable seniors. 

But Republican leaders have made clear they will agree to raise the debt ceiling only if Congress makes deep cuts to Social Security and Medicare—even after repeatedly denying that they would do so while on the campaign trail.⁴

Failing to raise the debt ceiling could result in a first-ever default on some of the government's obligations, which Moody's Analytics predicts would trigger a global market panic on the scale of the 2008 financial crisis and could result in a loss of nearly 6 million jobs, an unemployment rate of nearly 9%, the elimination of $15 trillion in household wealth, and a decline in real GDP of almost 4%.⁵

Even threatening to breach the debt ceiling could have catastrophic effects on the economy.⁶

The debt ceiling serves zero purpose other than giving Republicans leverage to force policy changes that are so deeply unpopular that there's no other way to accomplish them.

This is exactly what Republicans did under President Obama and President Clinton, and they are poised to do it again.⁷

Remember in 2011, when Republicans' refusal to raise the debt ceiling caused Standard & Poor's to downgrade the U.S. government's credit rating for the first time ever? Consumer confidence plummeted. And then-President Obama agreed to more than $2 trillion in spending cuts to end the crisis.⁸

We have to stop this reckless gamesmanship. We can't let Republicans hold Social Security and Medicare hostage.

Will you help us turn up the heat on Democrats in Congress by chipping in $5 a month to power and sustain our emergency campaign to stop Republicans in Congress from slashing Social Security and Medicare?

Yes, I'll chip in monthly.

No, I'm sorry, I can't make a monthly donation.

Thanks for all you do.

–Justin, Amy, Anne, Stephen, and the rest of the team

Sources:

1. "America Set to Hit Its Borrowing Limit Today, Raising Economic Fears," The New York Times, January 19, 2023
https://act.moveon.org/go/170247?t=6&akid=343125%2E53570607%2Ek03BJE

2. Ibid.

3. "U.S. will hit its debt limit Thursday, start taking steps to avoid default, Yellen warns Congress," CNBC, January 13, 2023
https://act.moveon.org/go/170248?t=8&akid=343125%2E53570607%2Ek03BJE

4. "Republicans Threaten Debt Limit Default to Force Cuts to Economic Security Programs," Joint Economic Committee Democrats, October 21, 2022
https://act.moveon.org/go/170003?t=10&akid=343125%2E53570607%2Ek03BJE

5. Ibid.

6. Ibid.

7. "What's the Debt Ceiling, and Will the US Raise It Again?" The Washington Post, December 4, 2022
https://act.moveon.org/go/169868?t=12&akid=343125%2E53570607%2Ek03BJE

8. Ibid.

Want to support MoveOn's work? Together, we must work to end the filibuster, codify abortion rights into law, and defend our freedoms, our families, and our futures. We can accomplish all this and more, but only if we work together.

Will you start a monthly donation right now to power our critical work?

Yes, I'll chip in $5 a month.

No, I'm sorry, I can't make a monthly donation.

Contributions to MoveOn Civic Action are not tax-deductible for income tax purposes. This email was sent to Andra Patterson on January 19, 2023. To change your email address or update your contact info, click here. MoveOn's privacy policy was recently updated. To read our new privacy policy, click here. To remove yourself from this list, click here.