WASHINGTON, DC – Building on her efforts to end the government shutdown and put Americans back to work, Congresswoman Carol Shea-Porter (NH-01) today called on Speaker of the House John Boehner (R-OH) to stop threatening default, end the government shutdown, and work across the aisle on a bipartisan budget that grows the economy and creates jobs.
In two days, the United States is slated to exhaust its borrowing authority, resulting in self-inflicted wounds that could cripple economic growth, create uncertainty for families and businesses, and drive the country back into recession. Increasing the debt limit does not authorize new spending nor does it increase the deficit. It simply allows the Treasury Department to pay the bills Congress has already incurred.
“Instead of taking our country to the brink of default, Washington Republicans should reopen the government and ensure America pays its bills on time so we can negotiate a bipartisan budget and focus on growing the economy,” Shea-Porter said. “For Speaker Boehner to allow the Tea Party faction of the Republican Party to put its ideology ahead of the health of the U.S. economy and financial security of New Hampshire families is irresponsible and unacceptable.”
In recent days, Senate Democratic and Republican lawmakers have held multiple meetings over a bipartisan approach to ending the government shutdown and raising the debt ceiling. To date, House Republican leaders have refused to bring a bipartisan funding bill up for a vote. Today, Speaker Boehner discussed introducing legislation that would only raise the debt ceiling if parts of the Affordable Care Act were repealed or delayed, such as removing requirements that employer-offered health insurance cover birth control and other forms of contraception.
“These partisan politics are exactly what Granite Staters hate about Washington,” Shea-Porter said. “This shutdown has now dragged on for two weeks, and that’s two weeks too many. It’s time to re-open our government, pay our nation’s bills, and work together to create jobs.”
Economists and politicians have widely agreed that failure to raise the debt ceiling will have significant negative consequences on the U.S. economy.
President Ronald Reagan: “The full consequences of a default — or even the serious prospect of default — by the United States are impossible to predict and awesome to contemplate.”
Judd Gregg, Former Republican Senator from New Hampshire: “Defaulting on the nation’s obligations, which is the alternative to not increasing the debt ceiling, is not an option either substantively or politically. A default would lead to some level of chaos in the debt markets, which would lead to a significant contraction in economic activity, which would lead to job losses, which would lead to higher spending by the federal government and lower tax revenues, which would lead to more debt. It understates things to say merely this is not a smart position to put forward. It is a terrible policy that would produce immense economic disruption and very difficult times for people on Main Street.”
U.S. Chamber of Commerce: “The U.S. Chamber respectfully urges the House of Representatives to raise the debt ceiling in a timely manner and thus eliminate any question of threat to the full faith and credit of the United States government.” [letter to Congress, 9/18/13]
Ben Bernanke, Chairman Federal Reserve Bank: “A government shutdown, and perhaps even more so a failure to raise the debt limit, could have very serious consequences for the financial markets and for the economy.”
Mark Zandi, Chief Economist at Moody’s Analytics: “It will be devastating to the economy… Consumer confidence will sharply decline, investor confidence, business confidence. Businesses will stop hiring, consumers will stop spending, the stock market will fall significantly in value, borrowing costs for businesses and households will rise.”
Bloomberg Editorial Board: “A default could trigger a global crash.”
Steve Bell, Senior Director for Economic Policy at the Bipartisan Policy Center: “I don’t know any serious person who doesn’t think this will be cataclysmic.”
Washington Post: “[A] debt-ceiling breach would push the economy into a free fall…The Obama administration will have to decide whether to delay — or possibly suspend — tens of billions of dollars in Social Security checks, food stamps and unemployment benefits if negotiations to raise the federal debt ceiling are not resolved this week, experts say, one of the many difficult choices officials will have to make at a time when the government will essentially be running on fumes.”
New York Times Editorial Board: “The Republican-induced government shutdown and the party’s threats to create another crisis next week over the debt ceiling are causing harm internationally as well as at home. They are undermining American leadership in Asia, impeding the functioning of the national security machinery, upsetting global markets and raising questions about the political dysfunction of a country that has long been the world’s democratic standard-bearer.”