Rep. Clark: Default would be ‘devastating’
The Democratic Whip held rally in HUB
A default of the nation’s debt would be “devastating to American families” and congressional Republicans’ “extortion” during negotiations is “outrageous behavior,” Democratic Whip Katherine Clark said Saturday during a rally in Boston.
“When Democrats are in the minority, when we are in the majority, we meet the debts of this country because we understand this is not something that you take the economy hostage for,” Clark said. “That’s why we joined with Republicans, even though we have disagreed with their policies, to raise the debt ceiling three times under Donald Trump.”
Clark was in Massachusetts just as the Biden administration is racing to reach a deal with Republicans led by House Speaker Kevin McCarthy to raise the nation’s borrowing limit, now at $31 trillion, so the government can keep paying the nation’s bills.
Republicans are demanding steep spending cuts the Democrats oppose.
Clark, a Massachusetts Democrat, said Republicans have “decided to take our country and our economy hostage” with proposed cuts to a wide range of programs.
“And if we don’t comply with their demands, they will default on the full faith and credit of the United States for the first time in our country’s history,” Clark said just outside the State House in Boston. “The MAGA extremists actually believe that losing 8.3 million jobs, plunging us into recession, skyrocketing the cost of our mortgages, car loans, groceries, healthcare is good fiscal policy.”
Negotiations had come to an abrupt standstill Friday morning when McCarthy said it was time to “pause” talks. Then the teams convened again in the evening, only to quickly call it quits for the night.
Biden, attending a meeting of global leaders in Japan, tried to reassure them on Saturday that the United States would not default, a scenario that would rattle the world economy. He said he felt there was headway in the talks.
“The first meetings weren’t all that progressive, the second ones were, the third one was,” he said, adding that he believes “we’ll be able to avoid a default and we’ll get something decent done.”
Negotiators for McCarthy said after the Friday evening session that they were uncertain on next steps.
“We reengaged, had a very, very candid discussion, talking about where we are, talking about where things need to be, what’s reasonably acceptable,” said Rep. Garret Graves, R-La.
Republicans argue the nation’s deficit spending needs to get under control, aiming to roll back spending to fiscal 2022 levels and restrict future growth.
But Biden’s team is countering that the caps Republicans proposed in their House-passed bill would amount to 30% reductions in some programs if defense and veterans are spared, according to a memo from the Office of Management and Budget.
Any deal would need the support of both Republicans and Democrats to find approval in a divided Congress and be passed into law.
Negotiators are eyeing a more narrow budget cap deal of a few years, rather than the decade-long caps Republicans initially wanted, and clawing back some $30 billion of unspent COVID-19 funds.
Back in Boston, local activists outlined what they believed were the impacts of cuts to federal programs.
Deb Paul of Indivisible Massachusetts Coalition said cuts to Social Security, health care, and other benefits will hurt families in the state.
“America has never defaulted on its debt. And we won’t let them do that now. Because if that happens, each of us will get hurt, pay higher prices,” Paul said. “… Congress has a duty to raise the debt ceiling and it seems that the MAGA Republicans forgot about this. They should raise the debt ceiling without restrictions.”
President Joe Biden use his authority under the Constitution’s 14th Amendment to avert a default on the nation’s debt, said Jim Cantwell, senior advisor and state director for Sen. Ed Markey.
“Using the president’s authority would allow him and the United States to continue to pay its bills on time, like all of you, and without delay,” Cantwell said. “It’ll ensure that we prevent a potential global economic catastrophe.”