200 U.S. Economists Tell Congress: Raise Debt Ceiling

More than 200 top US economists have warned congressional leaders that a failure to raise the debt ceiling would likely spark a devastating economic crisis, rattling global financial markets and killing jobs nationwide, Jake Johnson and Common Dreams reported for RawStory.

Photo Insert: The list of letter signatories includes Joseph Stiglitz, a recipient of the Nobel Memorial Prize in Economic Sciences, as well as former Federal Reserve Vice Chair Roger Ferguson, former Labor Secretary Robert Reich, Groundwork Collaborative chief economist Rakeen Mabud and former Fed Chair Ben Bernanke.

"The economic consequences of a federal default are unpredictable, but frightening," the economists warned in a letter to House Speaker Kevin McCarthy (R-Calif.), House Minority Leader Hakeem Jeffries (D-N.Y.), Senate Majority Leader Chuck Schumer (D-N.Y.), and Senate Minority Leader Mitch McConnell (R-Ky.).

"A swift and severe economic downturn could follow, with unnecessary layoffs across the economy," the experts wrote.

"Chaos in world 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."

The list of letter signatories includes Joseph Stiglitz, a recipient of the Nobel Memorial Prize in Economic Sciences, as well as former Federal Reserve Vice Chair Roger Ferguson, former Labor Secretary Robert Reich, Groundwork Collaborative chief economist Rakeen Mabud and former Fed Chair Ben Bernanke.

"We have a wide range of views on economic policies, some 'conservative' some 'liberal,'" the economists wrote, "but we all agree that Congress should raise the debt limit promptly and without conditions in order to eliminate the risk of default."

The letter was sent as congressional debt ceiling talks remain at a standstill, with the House Republican majority refusing to drop its push for deep federal spending cuts in exchange for lifting the borrowing limit.

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