Dear Friends,

All eyes are on Washington, as President Obama and Congressional leaders race against the clock to avoid defaulting on our national debt.  As the August 2^nd deadline quickly approaches, the big debate remains on how to address both the spending and revenue components in reaching a viable solution.  Just how serious is this issue?  Last night, the credit rating agency Moody’s announced that they are placing the U.S. credit rating under review for a possible downgrade, which could result in calamitous economic fallout.

For weeks now, Democrats in Congress, along with the President, have come to the table in good faith to reduce the deficit in a balanced way that grows our economy, creates jobs and strengthens our middle class.  Unfortunately, Republicans continue to choose partisan gamesmanship and refuse to budge on protecting tax cuts for a few Americans at the expense of most Americans; even if it means sacrificing small businesses, middle class families, and our nation’s standing as an economic leader in the world market. 

There is no doubt that I believe we must start paying off our debt and bringing down the deficit.  We have an obligation to pay our bills and be prudent with our spending.  But I also believe that putting our country’s credit at risk by defaulting affects the economy on a global scale, with detrimental and dangerous impacts on American families.

How does this affect you and your family? 

A default on our national debt would have real and devastating consequences.  The federal government would not be able to pay our soldiers fighting overseas nor provide benefits for our veterans, it would need to make deep cuts to Social Security and Medicare benefits and put millions of seniors at risk when they're already struggling to get by.  Millions of Americans could lose their jobs and even their homes, and it would be extremely difficult to get assistance for college, including Pell Grants.  

Defaulting could also add billions of dollars to the deficit since countries would charge a higher interest on our current debt which then creates yet another set of catastrophic results, including higher interest rates on mortgages, credit cards and other types of debt, and workers' retirement funds and pensions would take a plunge, forcing many Americans to delay retirement for years.

While disagreements and debates are healthy in a democratic process, we must put political goals aside and come together and act now for the sake of our nation’s economy and overall wellbeing.  As leaders, we were elected to represent the American people’s best interest, and so we must share that duty responsibly by paying our bills and ensuring we don’t default on our debt.

Sincerely,

Charles Gonzalez
Member of Congress