The Debt Ceiling Debate Continues: 150 Economists Sign Republican Pledge.
Economists: No Increase In Debt Ceiling Without Equal Cuts.
The debt ceiling debate in Washington is heating up. House of Representatives Speaker John Boehner has assembled over 150 economists who signed a pledge stating they would not back increases on the debt limit without equally matched cuts in spending in a letter released Wednesday June 1, 2011. Boehner has more ammunition and talking points to take to President Obama when they meet today to discuss raising the debt ceiling which is expected by many economists to happen later this year.
Portions of the letter circulated on the internet today.
Excerpt from letter:
“An increase in the national debt limit that is not accompanied by significant spending cuts and budget reforms to address our government’s spending addiction will harm private-sector job creation in America,”
The debt ceiling debate is causing some concern with investors as news about the U.S. debt situation continues making headlines. The Treasury Department raised concerns that the U.S. could default and earlier this year, the rating agency Standard & Poors warned that the country could face a change in credit rating due to fiscal policies. The debt ceiling debate is bringing back old pre-November 2011 notions of taxation and sources of growth. Boehner now has over 150 economists who agree that the current debt situation cannot continue -but will it be enough? Yesterday, the house defeated a bill that would have raised the debt-limit increase without equal cuts and we expect similar bills to have difficulty passing in the current political environment.