Hundreds Of Economists Call On Congress To Raise Debt Ceiling

[Omaha Steve]

http://www.laborradio.org/Channels/Story.aspx?ID=1450528

6/29/2011
Hundreds of economists are calling on Congress to raise the national debt ceiling. Jesse Russell reports.

A letter signed by 235 economists and five Nobel laureates has been delivered to Congress calling for swift movement on reaching a deal regarding raising the debt limit. During a conference call on Wednesday Nobel prize winning economist Robert Solow explained that if the debt ceiling isn’t raised the money used to pay interest will need to come from somewhere.

: If the interest is to be paid to pacify the foreign holders of Treasury debt, than other obligations of the federal government, salaries or whatever, will not be paid. Bills to from defense contractors will not be paid.

Former Council of Economic Advisers chairman Alan Blinder said the debt ceiling needs to go up to finance this year’s budget. That’s a decision Congress has already made.

: Failure to raise the debt ceiling at this point would essentially be declaring those decisions illegal, null and void, or whatever, not being able to carry them out.

President Barack Obama had strong words for Congress on Wednesday. He criticized Congress for taking time off for vacations while such an important issue was left hanging in the balance. Obama said he’s willing to make $1 trillion in cuts if Republicans compromise and eliminate tax breaks for millionaires and oil companies.