In times of crisis Americans turn to the Democratic Party for leadership. It was true in 1917 and the events that brought us into WWI. It was true in 1932, in the Great Depression, and 1942 as the United States entered WWII. As the Great Recession roiled our economy in 2008, the nation turned to a Democrat to return our economy to greatness.
In 2020, at the peak of the Great Divide, with loss of our Democracy a possibility, the nation turned to a Democrat to unite our country. 2023, and certainly 2024 are shaping up to be crisis years.
Presently, if the debt ceiling is not increased, it is likely the following will occur:
- A default would increase interest rates, which would then increase prices and contribute to inflation
- The stock market would suffer, as U.S. investments would not be seen as safe as they once were, especially if the U.S. credit rating was downgraded.
- Several government programs like Social Security and Medicare would be impacted. Military wages and even small business owners with federal loans would be at risk in the event of a default. Federal employees wouldn’t be paid and parents expecting a Child Tax Credit payment would get nothing.
Republicans will hold out on the current debt ceiling issue until their large donors force them to capitulate. The last time Republicans held out on raising the debt ceiling, the Dow dropped 6%, Over a Billion dollars were lost, and 1.2Million Jobs disappeared. None of this is appetizing to the large banks that fund the GOP: American Bankers Association, Arvest Bank Group, The Independent Community Bank, Woodforest National Bank, First Premier Bank, 1st Financial Bank USA, First Republic Bank, Citizens Bank, will not favor financial turmoil associated with our nation ruining its credit rating, and defaulting on our debt. In turn their large customers will not enjoy seeing fortunes lost. These Banks who sponsor the Republican Party must demand they act responsibly or pull back their funding. Money talks.
American citizens were more likely in the 2013 debt crisis to blame Republicans than they were Democrats, just as had happened in the 2011 crisis.
This current debt crisis, and then another one in 2024 will make it even more likely that history will repeat itself. Both houses of our legislature and the Presidency will be returned to Democrats who will solve the financial problems immediately.
But does anyone suspect Marjorie Taylor Greene and Laureen Boebert know anything about history, or economics?