MOAA President urges administration leaders “protect troops and families”
Jul 29 2011
Earlier this week, VADM Norb Ryan, MOAA president, attended a briefing at the White House regarding the impact on military troops and families if the country were to default on loans due to the current debt ceiling. Valerie Jarrett, the Senior Advisor to President Obama, Jon Carson, Director of the Office of Public Engagement, and a representative from the National Economic Council facilitated the meeting.
No specifics were offered about pay and benefits that would be sheltered from a default, but President Obama’s staff assured the small group of the nation’s largest military organizations, “…they care about our communities and are aware of the challenges,” said Ryan. “They want to keep an open dialogue with us about the progress of raising the debt ceiling and the impact of that legislation on our communities.”
Ryan urged administration leaders to make a priority of protection troops, families and veterans. “Our families are stressed and they need some certainties,” Ryan said.
What happens if the United States does not raise the debt ceiling?
While no one can predict all the effects, since this has never occurred in our country’s history, reaching our debt limit could result in the U.S left unable to pay all of its bills-including pay to troops.
Defaulting on payments would lower the country’s credit rating. Ultimately, that would mean the country would pay more to borrow money to pay bills, just as an individual with “bad credit” must pay a higher interest rate to buy a car or a house. Those borrowers are seen as a higher risk since they have been unable to maintain payments in the past. However, when a country’s credit rating drops, interest rates could inflate. This would affect everyday citizens’ buying power for purchases like homes, cars, and even food. Many fear that result will send the country into another recession.
MOAA will continue to the stress to the administration and congress that protecting service members, families and veterans must be a priority if the country is forced to decide which financial obligations to keep. If legislation to reduce the deficit is enacted, it cannot cut defense on the backs of those who have done all the sacrificing for the last 10 years of war – our military and their families.
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Learn more about money in the military at our blog Financial Frontlines.
