“Instead of presenting the American people with a plan to invest in our economy and create jobs for the 12 million Americans looking for work, Republicans are once again intent on manufacturing a crisis that will only increase unemployment,” said Nadler.  “We should not develop a plan for how to generate a devastating default that will put our economy into chaos.  We should repeal the sequester and invest in job creation.”

This GOP bill would ensure that, if House Republicans cause a default on our nation’s debt, bondholders from China and other foreign nations would be paid first – putting payments to Americans at risk, including those to:

• 1.4 million active duty troops and 780,000 activated reserves and National Guard 

• 3.4 million disabled veterans who served their country with honor

• 1.3 million veterans who receive education or home purchasing assistance

• American small businesses that sell goods and services to the government

• Doctors and hospitals that treat the 50 million Medicare patients around the country

Below is Nadler’s complete statement on the House floor, as prepared:

“Mr. Speaker, I rise today in strong opposition to H.Res. 202 and the underlying bill.  This bill would raise the debt ceiling, but only insofar as necessary, and only for the purpose of paying our debts to China and to Social Security.  It would mandate not paying Medicare beneficiaries, or our troops overseas, or veterans here at home and would generally collapse the economy by forcing default on most of our debts.  

“Raising the debt ceiling merely allows us to pay all debts we have previously incurred.  We should recognize this simple reality by eliminating the debt ceiling and passing responsible budgets.  But Republicans now use the debt ceiling to hold the entire country hostage unless their demands are met.  This Republican tactic has brought about the first downgrade in the U.S. credit rating in history and brutal spending cuts that have punished the middle class, failed to help the millions of Americans looking for work, and weakened the safety net for working families and seniors. 

“In the last three years, we have reduced the deficit from 10.1 percent of GDP to nearly 4.8 percent today.  This is the fastest deficit reduction since the demobilization after World War II.  Economists agree the draconian austerity decreed by the sequester is slowing our economic growth, eliminating millions of jobs, and could create a double-dip recession. 

“Yet, instead of presenting the American people with a plan to invest in our economy and create jobs for the 12 million Americans looking for work, Republicans are once again intent on manufacturing a crisis that will only increase unemployment.  We should not develop a plan for how to generate a devastating default that will put our economy into chaos.  We should repeal the sequester and invest in job creation.”