[WASHINGTON, DC] – On December 14 Congresswoman Frederica S. Wilson voted for must-pass legislation to prevent a first-ever default on the federal debt, which would result in economic catastrophe for nearly every American family and the entire global economy. This legislation now goes to President Biden to be signed into law, ensuring the federal government can continue to meet its financial obligations.
“Congress has a responsibility to protect the full faith and credit of the United States, not cause an economic catastrophe by refusing to pay the nation’s bills,” said Congresswoman Wilson. “A catastrophic and unprecedented debt default would skyrocket the costs of student loans, car payments, credit card bills and many other everyday costs Florida families face. As our economy continues to recover from the pandemic and families struggle with rising prices, we cannot further stretch families’ budgets by allowing the economy to crater. That is why I voted to protect Floridians’ financial future by addressing the debt ceiling today.”
Addressing the debt limit ensures the U.S. can pay bills that have already been incurred, and it does not authorize future spending. Under the previous Administration, Republicans added $7.8 trillion to the federal debt – including a $2 trillion tax scam benefiting the rich – while voting to raise the debt limit three times. Each of those times, Democrats helped Republicans to do so, because both parties share a bipartisan obligation to ensure that the full faith and credit of the United States never comes under threat. Only 3.8 percent of the outstanding debt was incurred under the Biden Administration.
A first-ever default would trigger a global economic collapse and devastate the financial security of American families. A study by Moody’s showed that a debt default would erase $15 trillion in household wealth and eliminate up to six million jobs. A default would also downgrade the nation’s creditworthiness – sending interest rates surging and drastically raising the cost of borrowing for families and small businesses.
“After Republicans added $2 trillion to the debt with their GOP tax scam for the rich, I’m proud that House Democrats’ Build Back Better Act will instead reduce the deficit by more than $100 billion in the first ten years and by $2 trillion in the next decade,” said Congresswoman Wilson. “Fiscal responsibility means paying our bills and protecting our economy and working families from the damage of default. It’s hypocritical, cynical and downright dangerous that my Republican colleagues are so indifferent to the needs of their constituents and the country that they would rather play political games than join Democrats in safeguarding our economy from destruction.”