Robert Harding, The (Auburn) Citizen
If the debt ceiling is not raised and the U.S. defaults on its debt, Senate Majority Leader Chuck Schumer said Wednesday that it would be an “economic nightmare” for upstate New York, particularly those receiving Social Security, homebuyers and veterans who depend on federal benefits.
The U.S. reached its debt limit last week and the Treasury Department implemented what it called “extraordinary measures” to buy time for Congress to act. But some House Republicans have signaled that they will not support raising the debt ceiling unless there are cuts to government spending.
Schumer, D-N.Y., criticized the “fringe, extreme MAGA wing” of the Republican Party for putting the country at risk of default. If that happens, it would have a devastating impact on upstate New Yorkers. He said more than 1.8 million upstate residents who receive Social Security benefits could have their monthly checks disrupted. Medicare reimbursements for hospitals and Medicaid payments for 3.7 million New Yorkers could be interrupted. Veterans’ benefits could be wiped out or reduced, he warned.
It would also affect individuals buying a car or home, and those with credit cards. If there is a default, interest rates would rise. Schumer cited Moody’s projection that mortgage rates would increase to more than 8%. For someone buying a $275,000 home in Albany, Schumer said that mortgage rate would increase the total cost of the home by $78,000 over a 30-year period.
“As we get closer and closer to the day that we have to act, upstate New York families will see this and I think it’s our obligation to let people know how bad this is so they can tell their congressmembers, Democrat and Republican, to avoid default at all costs,” Schumer told reporters. “Don’t do brinksmanship. Don’t do hostage-taking. Let’s just get this done.”
Schumer and House Democratic Leader Hakeem Jeffries, along with other congressional Democratic leaders, met with President Joe Biden at the White House on Tuesday. The debt ceiling was among the topics discussed at the meeting.
But to raise the debt ceiling, Biden and Schumer must reach an agreement with House Speaker Kevin McCarthy, who leads the Republican majority. In response to a question from The Citizen, Schumer said he intends to meet with McCarthy to discuss the debt ceiling. His message for McCarthy and House Republicans is to not play games with the debt limit. “If you are saying you want to make these kinds of devastating cuts, lay them out,” Schumer continued. “Show the American people what they are and my guess is the Republican House members would not even support them.”
