WASHINGTON, D.C. – Ranking Member Martin Heinrich (D-NM) announced today the release of new analysis by the Joint Economic Committee Democrats explaining how Republicans’ failure to pass a clean increase in the debt ceiling creates significant economic costs for all Americans.

Already, this failure is forcing the U.S. Treasury to resort to “extraordinary measures” to pay all of Congress’s bills, which only delays an inevitable technical U.S. government default. The longer Treasury remains hamstrung, the likelier financial investors will start demanding higher interest rates on U.S. debt, meaning higher borrowing costs for taxpayers and consumers throughout our economy, and greater uncertainty faced by business investment.

The report reveals that debt brinkmanship in 2011 increased the federal government’s borrowing costs by $1.3 billion in that year alone. If the upcoming debt brinkmanship has a similar impact to the 2011 episode, the average homebuyer could end up paying nearly $35,000 extra on their home mortgage.

“The closer Republicans push our nation towards default, the higher the costs will be for Americans,” said Senator Heinrich. “Defaulting on payments to U.S. creditors or commitments to seniors, veterans, and other beneficiaries of public programs is no way to ensure an economy that works for all.”

The report can be found here.

###

 For more information, please contact Latoya Veal at Latoya_Veal@jec.senate.gov or 202-224-0379.