Karine Jean-Pierre claims Republicans are 'threatening to kill millions of jobs and 401k plans'

The White House on Wednesday accused Republicans of using the economy as a debt limit hostage to drive through swingeing spending cuts that would hurt ordinary Americans.

The U.S. is due to rub up against the debt limit on Thursday, with Congress now tasked with staving off a catastrophic default, which could arrive in June.

But that needs agreement on raising the debt limit from $31 trillion, something hardline Republicans say they will only agree to if it comes with spending reductions and changes to President Joe Biden's policies.

The White House went on offense Wednesday. 

'They're threatening to kill millions of jobs and 401K plans by trying to hold the debt limit hostage unless they can get cut Social Security, cut Medicare, cut Medicaid,' said Press Secretary Karine Jean-Pierre during her regular briefing. 

White House Press Secretary Karine Jean-Pierre on Wednesday accused Republicans of using the economy as a hostage to win swingeing spending cuts that would hurt Americans

'So on this last point, the president has been clear he will not allow Republicans to take the economy hostage or make working Americans pay the price for their schemes to benefit the wealthiest Americans and also special interests.'

The Treasury last week warned the the nation that it would hit its debt ceiling on Thursday, forcing it to use 'extraordinary measures' to stave off a default.

Those workarounds will likely allow the government to keep paying its bills into June. 

But without raising the debt limit in the meantime the result would still be a default, with the federal government unable to pay workers, raising interest rates, and sending the stock market into freefall — with the economic shockwaves reverberating all around the wall.

Some Republicans see an opportunity to rein in what they see as lavish spending by Democrats.

Hardliners such as Rep. Andy Biggs have said they want no increase to the debt ceiling

He said Democrats would have to deal with fallout from 'carelessly' spending taxpayers' cash

Some Democrats wanted President Biden and Democrats to push through a debt limit increase on their own before handing over control of the House to Republicans

Rep. Andy Biggs, an Arizona Republican, said on Twitter that he did not support any increase in the debt

'We cannot raise the debt ceiling,' he wrote. 

'Democrats have carelessly spent our taxpayer money and devalued our currency. 

'They've made their bed, so they must lie in it.'

That brought a withering response from the White House.

'Default would needlessly plunge the country into economic chaos, collapse, and catastrophe while giving our competitors like China an historic boost against us,' said Andrew Bates, a spokesman.

'That’s why congressional Republicans – with strong bipartisan support from Democrats – avoided default three times under Donald Trump, without conditions or playing chicken with our credit rating.

'This president and the American people will not stand for unprecedented economic vandalism. Full stop.'

The U.S. will run up against the debt limit January 19, Treasury Secretary Janet Yellen told Congress. 'Once the limit is reached, Treasury will need to start taking certain extraordinary measures to prevent the United States from defaulting on its obligations,' she said

 

Mark your calendars: Yellen said the 'extraordinary measures' would likely run out in June

Most Republicans do not go as far as Biggs.

They have said they will agree to raise the debt ceiling but only if Democrats commit to significant reductions in spending. 

House Speaker Kevin McCarthy put it like this: 'If you gave your child a credit card and they kept hitting the limit, you wouldn't just keep increasing it. 

'You would sit down with them to identify where they are overspending and where they can change their behavior. It's time for the federal government to do the same thing.'

Jean-Pierre said that was not on the table, and again pointed to agreement under Trump and that the results of the midterms – when an expected red wave did not materialize – suggested Republicans did not have the high ground.

'It is something that should be done without conditions,' she said.

'We should not be negotiating around it.'