: Democrats blame retirees’ potential retirement savings loss on ‘Republican debt crisis’ 

by | Mar 28, 2023 | Stock Market

Americans may lose $20,000 in retirement savings, and face issues getting their Social Security checks if the debt ceiling isn’t raised soon, a recent Democratic report found.  A default could lead to a market decline, and as such, workers would see a drop in their retirement accounts, according to the Joint Economic Committee Democrats. Without a fix, Social Security beneficiaries could also be in danger as the government would not be able to meet “existing obligations.”

The report blamed the potential losses on Republicans and their alleged default crisis.  “The debt ceiling is not a bargaining chip, and Republican plans to prioritize some payments over others amount to, in the words of Treasury Secretary Janet Yellen: ‘default by another name,’” the report said. “What’s more, this brinkmanship jeopardizes the stability of U.S. and global financial markets at a time of increased global uncertainty.” The report continued by saying Republicans did not support the Inflation Reduction Act, and now want to make “irresponsible cuts to crucial funding and put vital programs at risk.”  The committee cited centrist think tank Third Way, which released a report in December stating a typical worker could lose $20,000 in 401(k) assets if the country were to default on its debt. Americans could also spend $130,000 more on 30-year mortgages and find difficulty in taking loans for education or small businesses, Third Way reported.  If the debt ceiling is reached, the governm …

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