happening here, let s go back again to what mitch mcconnell told the washington post in 2011. the full coat starts with saying, i think some of our meshes may have thought the default issue was a chance you might take at shooting. it s apt. it s about people, people s lives, their money, their social services, their retirements, their literal 401(k)s. a few years ago the economist at moody s found the impasse could cost the u.s. economy up to 6 million jobs. it could wipe out as much as $6 trillion in household wealth and send the unemployment rate surging. today this was the advice that the new york times gave to investors. at a minimum as an investor, you will want to be prepared with ample cash holdings.
devon nunes, thank you. we want to address joe biden s dishonesty after not raising taxes on you the middle classes. increased taxes on 401k s, oil, coal. also taxed 401 k s. prom promising not to raise taxes on anyone making less than $400,000. let me be crystal clear will pay a single additional penny for all those things in the
how disastrous that will be for domestic markets, international financial markets, people s 401(k)s. right now we don t know, you know, how far they are willing to go. but as garrett says, republicans have talked a good game about cutting spending for decades and yet they come up against the realities of mathematics and they are going to be again. by the way, going after social security, medicare in the defense budget, do not seem to be political winners even for the republican base. that s a very good point. i want to focus on a piece of the house republican agenda, that s the committee on, quote, the weaponization of the federal government, which is a way for former president trump s allies to try to discredit the work being done at the justice department, other agencies, the fbi, of course, also part of justice, but also the irs and all of the subpoenas that they are going to be flooding the white house with.
transforms itself into a picture of donald trump. and the republican party seems to have been deeply infected by the trump virus to the point where any articulation of what it stands for or stands against, levels cruelty to people, and people understand that, more and more people understand that. but it seems to me that what people don t really grasp about maga republicans, any republicans at all, even some democrats is that the root of all this lies in the simple word loss. and by that i mean there are millions of americans who feel that over the past 10 or 15 years they have lost out on things that accrue to the vast majority of people around them. they lost their homes, many of them, in 2008. they lost their incomes, their 401(k)s. many of them come from families who lost a son or a daughter in either iraq or afghanistan. and thus they feel separate from the rest of the country.
inflation and what the federal reserve will have to do to get inflation back down. this summer there was hope that maybe inflation would calm down enough to allow the federal reserve stop slamming the brakes on economy. that was wishful thinking. and jay powell promised to do whatever it takes to get inflation under control. the concern is that the fed is going to overdo it and accidentally push the economy into recession. that s why we saw the down fall down almost 2%. at one point the dow was down 800 points and on the verge of closing in a bear market for the first time since march 2020. these losses, of course, are wiping out college savings plans, 401(k)s. hopefully the gloom and doom on wall street is overdone.