Linda Sánchez: “Our Constituents are Looking for Certainty” (Apr. 10, 2013)
Washington, DC – Congresswoman Linda Sánchez today criticized House Republicans during a House Committee on Ways and Means hearing which explored the possibility of defaulting on America's debt rather than raising the debt ceiling.
Congresswoman Sánchez' remarks are below. To see a video clip of the Congresswoman's statement, click here.
"I want to thank the Chairman and the Ranking Member.
"Oddly, I feel like we've slipped into the movie ‘Groundhog Day.' Here we are, having the same old discussion that we've had over the last two years, and we're just spinning our wheels. I would have thought that Congress would have learned its less regarding defaulting on our obligations after the summer of 2011, but apparently not.
"I do say default because the president doesn't have the power to lift debt limit. That power is vested in the Congress. The Congress decides, and when the Congress decides that they don't want to increase the limit that is what will lead to a default.
"I think that just threatening to not increase the debt limit has severe consequences that everybody just seems to ignore. The fact is that after 2011, our nation's credit was downgraded when there was threat of the limit not being increased. There was a drop in the S&P 500 of 220 points between July and August of 2011. There was a 2,000-point drop in the Dow during the same period.
"Here we go again—spinning our wheels.
"Instead of having hearings on things like job growth, which could perhaps bring in more revenue for our economy, or how we will protect seniors, we're discussing how to best become a deadbeat nation. It's just the same old political talking point. It's not a solution to our debt and our deficit. We're considering today the merits of default prioritization legislation. Those are legislative options that simply assume that the U.S. skips out on paying its bills.
"We all know that the Treasury Department and the Council of Inspectors General on Financial Oversight have stated that there's not a legal option of prioritization. We all know that there is no fair or sensible way to pick and choose among the many bills that come due every single day. On top of all of this, even if it were legal to create that kind of prioritization—and the Treasury Department has assured us that they cannot—it's nearly impossible logistically.
"The Treasury Department makes over 100 million payments a month -- a hundred million payments a month. Their computer systems are programmed to make those payments in the order in which the bills are received. Maybe most importantly, even if the debt prioritization were legally and logistically possible, a partial default -- even a partial default -- would be devastating to our economy. It's important to remind people that just the implication that the U.S. government will reach the debt ceiling and not be able to pay its bills sends shockwaves throughout our financial system.
"It creates uncertainty in the bond markets, it tightens credit, and it hurts job growth. This hearing completely encapsulates the dysfunction of Congress. We're not here to talk about how to fix the debt limit. That's not what this hearing is about. We're here, instead, to talk about legislation that's impossible to implement and, quite frankly, a waste of our time and attention.
"These do-nothing bills create long-term uncertainty at a time when businesses are begging for certainty. They're begging for us to get things settled in a way that allows them to plan. Our constituents are looking for that certainty.
"So, I look forward to hearing what bills you don't want to pay first. Will it be Social Security checks to 56 million seniors and people with disabilities? Or will it be the salaries of more than 2 million American military personnel?
"I have to say, quite frankly, I'm disappointed that we're not talking about job growth or other worthwhile areas that are worthy of our time. With that, I will yield back the balance of my time."
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