Chief Economist Jason Fichtner Calls for Raising the Debt Ceiling Before Senate Budget Committee
Washington, DC – Today, Bipartisan Policy Center Chief Economist and Vice President Jason Fichtner testified before the Senate Committee on the Budget’s hearing: The Default on America Act: Blackmail, Brinkmanship, and Billionaire Backroom Deals.
He specifically addressed three things:
- Congress must raise the debt ceiling;
- The nation’s debt is on an unsustainable trajectory and action must be taken now. Further delay will only make the problem worse and the necessary corrections more harmful to the country and to the most vulnerable in our society; and
- Raising the debt ceiling and tackling the fiscal challenges facing our nation will require both a bipartisan effort and presidential engagement.
Fichtner said, “First, Congress must raise the debt ceiling. Period. Full stop. Taking the nation near the brink of defaulting on any payment obligations—or going over the cliff and failing to make any obligated payments—will cause unnecessary fiscal expense, potentially damage the full faith and credit of the United States, cause financial harm to millions of Americans (through possible delayed government payments and loss of stock market value and retirement account wealth) and, in the end, cost more than any potential savings being discussed or imagined.”
Fichtner’s complete testimony is available online.
Note: BPC will release our X Date projection on Tuesday, May 9. Embargoed copies of BPC’s early analysis will be available on Monday, May 8. BPC economists are available for comment.