April 10, 2023

Americans Could Lose $20,000 in Retirement Savings if GOP Refuses to Raise the Debt Ceiling

The Joint Economic Committee (JEC), a congressional group that reviews economic policy, recently released a report analyzing the consequences of failing to raise the debt ceiling. Based on a study of the 2011 debt limit negotiations, the analysis finds that Americans could lose $20,000 in retirement savings. Private student-debt loads could also surge.

The nation could run out of extraordinary measures to pay its bills as soon as July — meaning there is a risk of unprecedented, severe financial consequences.

The debt ceiling was raised three times during President Trump’s term with bipartisan support. This year, however, Congressional Republicans say President Biden must satisfy their fiscal demands before they’ll vote to raise the debt limit again. To date, Speaker Kevin McCarthy has not specified what his caucus’ demands are and whether 218 House Republicans would vote for whatever those demands turn out to be.

“The JEC study shows just another way that Americans, especially retirees, could suffer if Republicans continue to play partisan games with the economy,” said Richard Fiesta, Executive Director of the Alliance. “This is irresponsible, and older Americans must continue to demand action to prevent an economic catastrophe.”