Letter organized by the Washington Center for Equitable Growth
Dear Speaker McCarthy, Majority Leader Schumer, Minority Leader Jeffries, and Minority Leader McConnell:
We, the undersigned economists, urge Congress not to default on our nation’s current federal debt obligations for the first time in U.S. history. We have a wide range of views on economic policies, some “conservative” some “liberal,” but we all agree that Congress should raise the debt limit promptly and without conditions in order to eliminate the risk of default.
The economic consequences of a federal default are unpredictable, but frightening. A swift and severe economic downturn could follow, with unnecessary layoffs across the economy. Chaos inworld financial markets is highly likely. Higher borrowing costs for the federal government, and indeed for all Americans, could remain with us for a long time—an unwanted legacy of a foolish decision. We should not run the experiment.
Our nation faces many pressing economic challenges. Defaulting on our national debt—which is dangerous and unnecessary—should not be added to the list by Congress. We urge Congress, on a bipartisan basis, to act quickly and decisively to raise the federal debt limit.
Full letter: “Raise the federal debt limit” via equitablegrowth.org.