Economists Agree: Spending Cuts Needed
House Speaker John Boehner came to the meeting today with President Obama with some extra help. Armed with a letter signed by over 150 economists who all say a debt limit increase must be accompanied by spending cuts totaling more than the increase, the Speaker stands poised to steer negotiations in his favor.
The signers included a Nobel Prize winning economist, two former Congressional Budget Office directors, economists from schools such as Stanford and Carnegie Mellon, as well as a former U.S. Secretary of State. They opened the 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. It is critical that any debt limit legislation enacted by Congress include spending cuts and reforms that are greater than the accompanying increase in debt authority being granted to the president. We will not succeed in balancing the federal budget and overcoming the challenges of our debt until we succeed in committing ourselves to government policies that allow our economy to grow. An increase in the national debt limit that is not accompanied by significant spending cuts and budget reforms would harm private-sector job growth and represent a tremendous setback in the effort to deal with our national debt.”