Rep. Johnson Votes to Address Debt Ceiling, Prevent Catastrophic Default

Press Release

This week, Rep. Johnson 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. This crucial bill comes after Senate Republicans voted unanimously on Monday to recklessly endanger the American economy by blocking action to address the debt ceiling.

"Threatening the full faith and credit of the United States puts at risk the financial security of millions of hard-working Americans," said Rep. Johnson. "While Democrats are working hard to avoid a catastrophic debt default, Republicans have chosen to hold the American economy hostage. I proudly voted to protect Georgia families from the certain financial ruin of default, and I call on my colleagues across the aisle in the Senate to do the same."

This crucial legislation suspends the debt ceiling through December 2022, so that the federal government can continue to meet the financial obligations it has already made. This includes the bipartisan December COVID relief legislation, as well as Social Security and Medicare benefits, services for veterans and paychecks for members of the military.

Failing to address the debt ceiling would put at risk the financial futures of nearly every American family. A recent study by Moody's showed that a debt default:

Would cost the U.S. economy up to 6 million jobs;
Wipe out potentially $15 trillion in household wealth;
Send borrowing rates skyrocketing; and
Double the unemployment rate, surging up to nine percent.

Over the last decade, every time the debt limit has needed to be addressed, Congress has come together and acted on a bipartisan basis. Over his four-year term, President Trump incurred $7.8 trillion in debt, and during those four years, Democrats worked with Republicans to increase or suspend the debt limit three separate times. Even as Republicans added $2 trillion to the debt with a GOP tax scam for the rich, passed on a party line vote, Democrats helped Republicans address the debt ceiling -- firmly believing that protecting the full faith and credit of the United States is beyond question. Just two years ago, Senate Minority Leader Mitch McConnell agreed: acknowledging that "America can't default. That would be a disaster" and supporting the suspension of the debt limit as necessary because it "secures our nation's full-faith and credit and ensures that Congress will not throw this kind of unnecessary wrench into the gear of our job growth and thriving economy."

Now, under President Biden, McConnell and many Republicans have hypocritically reversed their position and refuse to join Democrats in addressing the debt limit -- despite the fact that only 3 percent of the current debt was accumulated under President Biden, whereas more than 27 percent was incurred under President Trump.

"Failing to address the debt limit is like racking up charges on a credit card and refusing to pay the bill," Rep. Johnson continued. "Right now, America's credit card bill includes payments for veterans, Social Security beneficiaries and our troops -- as well as trillions in spending by President Trump and Republicans in Congress. Still, Democrats are addressing the debt because we believe both parties share the obligation to safeguard America's full faith and credit, and we call on Republicans to join us in this solemn duty."

Source