Davis Statement on the Dangerous Republican Debt Prioritization Bill

“U.S. Representative Danny K. Davis Statement on the Dangerous Republican Debt Prioritization Bill”

May 9, 2013

Washington, D.C.-Congressman Danny K. Davis (D-IL) who sits on the Committee on Ways and Means in the House of Representatives with jurisdiction over revenue and debt issued the following statement on Republican legislation (H.R. 807) to prioritize paying debt to China and other foreign entities over paying our seniors, unemployed, enlisted Americans, and veterans:

“I strongly oppose the Pay China First default plan proposed by the House Republicans. The federal government is obligated to pay its debt, just like every other business and citizen in America. The citizens of the United States are counting on policymakers to take action and increase the debt limit so that this country can pay all of the bills that it has accumulated. The citizens of the United States are counting on policymakers to put the interests of American citizens before those of investors from foreign countries.”

“The last time the Republicans threatened default, America experienced the worst job creation month in three years; the Dow Jones Industrial Average plunged 2,000 points in two months; and for the first time in our nation’s history, the credit rating of the United States was downgraded. Prioritizing debt payments to avoid a default would greatly disrupt our economy, creating a sudden fiscal shock that would harm American families, businesses, and workers. The prioritization of payments means the federal government would pay foreign countries prior to paying already-struggling middle class Americans - including millions of active duty and reserve troops, veterans, and children; prior to paying earned payments to small businesses; prior to paying doctors for seeing Medicare patients; and prior to paying grantees who are conducting life-saving medical research.”

“Despite the reductions to the federal budget that have already occurred, the economy is showing signs of recovery. At this point in our economic recovery, raising the debt ceiling is critical to sustain and promote our economic recovery. We must uphold our responsibility to our constituents and to this country. We must pay all of our bills in the order they are received, as we have done since 1790. Doing otherwise would be dangerous, reckless, and irresponsible.”