Sen. Dianne Feinstein (D-CA) urged lawmakers to embrace a package that could avert the so-called fiscal cliff, noting that 2.1 million Americans have already lost federal unemployment benefits as a result of Congressional inaction. “From this point on, it is lose-lose,” Feinstein explained, during an appearance on Fox News Sunday. “My big worry, is, a contraction of the economy. The loss of jobs, which could be well over 2 million in addition to the people already on unemployment.”

Indeed, the National Employment Law Project, a worker advocacy group, projects that “more than 2 million Americans will stop receiving benefits after Dec. 29, when the federal Emergency Unemployment Compensation program will cease to exist.” The benefits have kept 2.3 million out of poverty last year alone, and the Congressional Budget Office projects that a full, year-long extension would lead to the creation of 300,000 new jobs.

The initiative requires recipients to search for a job while receiving payments, and one study found that unemployment recipients search harder for jobs than those who are not receiving money from the program.

Earlier this week, Senate Minority Leader Mitch McConnell (R-KY) demanded spending cuts to pay for the program, which would cost $30 billion. Democrats have been pushing for a full extension of benefits.

Although official Washington is currently fixated on the so-called “Fiscal Cliff,” the biggest threat to American prosperity is the debt ceiling, which must be raised in February to prevent economic catastrophe. If Republicans refuse to reach a deal on the so-called cliff, the Congressional Budget Office predicts that they will spark a new recession in 2013. But if Republicans block action on the debt ceiling, they will make that potential recession look quaint. Without raising the debt ceiling, the United States will be forced to embrace austerity so severe it will lead to “a bigger GDP drop than that experienced during the Great Recession of 2008.”

But in an interview on Fox News Sunday this morning, Sen. Lindsey Graham (R-SC) threatened to oppose this must-pass bill unless Social Security benefits are taken away from millions of future retirees:

I’m not going to raise the debt ceiling unless we get serious about keeping the country from becoming Greece, saving Social Security and Medicare [sic]. So here’s what i would like: meaningful entitlement reform — not to turn Social Security into private accounts, not to take a voucher approach to Medicare — but, adjust the age for Social Security, CPI changes and means testing and look beyond the ten-year window. I cannot in good conscience raise the debt ceiling without addressing the long term debt problems of this country and I will not.

Watch it:

This is extortion, plain and simple. It is the budgetary equivalent of threatening to break America’s legs unless Congress agrees to break the backs of millions poised on the edge of retirement. Graham’s position is that seniors should have to wait longer for their retirement benefits — even if they work in physically demanding jobs that literally tear the body apart by the time a worker reaches age 65 — and that those benefits should be reduced in the future.

And if Congress won’t agree to this deal, then Graham is prepared to thrust the nation into an economic calamity unheard of since the Great Depression.