As House Republicans Plot to Destroy U.S. Economy, McCarthy and House Republicans Remain at Mercy of Far-Right

As Kevin McCarthy flailed in his speakership bid, he began to concede power to far-right defectors in return for their support. While many concessions are still unknown, today, we are beginning to see how far some of McCarthy’s concessions go and the control these extreme members have on the new Speaker and Republican House caucus.

The United States is set to reach its debt limit on Thursday, January 19th. And while the Treasury Department said it will take “extraordinary measures” to avoid default, House Republicans are plotting a catastrophic showdown, refusing to support the historically bipartisan, must-pass economic legislation unless the country caves to their extreme MAGA agenda.

Today, McCarthy confirmed that he, and the full faith and credit of the United States, are being held hostage by members of the House Republican conference who refuse to support a clean bill.

DCCC spokesperson Tommy Garcia:
“Every Republican who stands by Kevin McCarthy as he wages a war on the full faith and credit of the United States in exchange for his speakership bears responsibility for any economic consequences to come. Kevin McCarthy and the House Republican conference are showing the country they are fully indebted and beholden to far-right extremists.”

If House Republicans refuse to get on board with this routine, must-pass economic legislation: 

• • According to a Moody’s analytics report in 2021, a default “could throw the U.S. economy into a tailspin as bad as the Great Recession.” Moody’s also projected a “4% decline in gross domestic product and a loss of nearly 6 million jobs.”

• And if the U.S. were to default, according to a recent report from Third Way:

  • The United States could shed as many as 3 million jobs—undoing nine months of employment growth.

  • A typical worker near retirement with 401(k) savings could lose $20,000.

  • The average new 30-year mortgage would cost an additional $130,000.

  • It would become harder to borrow for everything from small business loans to student loans.

  • American consumers will see higher price tags for everyday items.

  • The national debt would increase by $850 billion.

###