For months now, Congress has gone back and forth on their debate about what to do with the debt ceiling. The debt ceiling is a sensitive issue, as it affects America’s entire economy. Congress’s debate is on whether to raise the debt ceiling or not; it was decided in October 2021 that the ceiling would be raised through the rest of the year.
On Nov. 30, Janet Yellen, the U.S. Treasury Secretary, testified in front of Congress about how failing to raise the debt limit will adversely impact the welfare of most Americans — especially those who rely on critical government benefits like Social Security. Once again, she’s presenting her argument that the debt ceiling urgently needs to be raised so America’s economic recovery can remain on track.
By raising the debt ceiling, the U.S. can pay its bills; alternatively, if Congress doesn’t raise the ceiling, the U.S. could run the risk of defaulting on those bills.
What We Need to Do
Legislation passed by the House of Representatives and the White House during the height of the pandemic has helped ease people’s struggles. And the recent infrastructure bill has also provided some much-needed aid to America’s economic recovery.
But these programs will be considerably stunted by defaulting on our debts. Social Security is also endangered, as millions of benefit payments would be halted or delayed.
Janet Yellen stated in her testimony:
“The first is the debt limit. I cannot overstate how critical it is that Congress address this issue. America must pay its bills on time and in full. If we do not, we will eviscerate our current recovery. In a matter of days, the majority of Americans would suffer financial pain as critical payments, like Social Security checks and military paychecks, would not reach their bank accounts, and that would likely be followed by a deep recession.”
Clearly, waiting is only putting us more and more at risk of the future. It is time to act. Join us today in the Council for Retirement Security’s efforts to protect and preserve the benefits earned by America’s retired senior citizens.