Debt Management and Fiscal Responsibility Act of 2015

Floor Speech

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Mr. TAKANO. Mr. Chairman, I rise today in support of my amendment to help Congress better understand how the mere threat of default would impact our economy.

The Debt Management and Fiscal Responsibility Act gathers information from the Treasury about our Nation's debt but omits critical details; namely, the consequences for the country when my friends in the majority play a game of chicken with the full faith and credit of the United States.

When the majority threatened the default in 2011, it was American families who paid the price. Household wealth fell by $2.4 trillion. Consumer and business confidence plunged. The S&P 500 dropped 17 percent, $800 billion in retirement assets were wiped out, and our credit rating was downgraded, all thanks to Republicans threatening to force an unprecedented default on America's debt.

If the extreme wing of the Republican Party is going to hold the economy hostage over the debt limit, they should at least understand the damage they are causing. My amendment requires the Treasury to include in its report to Congress the impact that the threat of default and congressional delay would have on the economy.

The report would include the estimated effect on the gross domestic product, interest rates, employment, household wealth, and retirement assets. Honestly, I hope we never have to see this impact assessment produced. I hope we never again have to convince Republicans that raising the debt limit is a basic responsibility of Congress, not a bargaining chip. But their record says otherwise.

The next time Republicans seek to score political points and push a radical agenda by threatening not to pay America's bills, I want the public to understand the cost of that threat. I think we will find pretty quickly that the American people have no appetite for petty politics when it comes to the debt limit. I urge my colleagues to support my amendment.

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Mr. TAKANO. Mr. Chairman, my amendment does address the issue at hand. It does address the threat, just the mere threat of brinksmanship with paying our Nation's bills. History has shown that just the mere threat of defaulting on our bills has brought about damaging consequences to our economy and to the welfare of our people.

I urge my colleagues to support my amendment.

Mr. Chairman, I yield back the balance of my time.

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Mr. TAKANO. Mr. Chairman, I demand a recorded vote.

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