Wall Street, business leaders, and economists have all called for immediate action by Congress to ensure that America pays its bills and doesn’t default on its financial obligations. The latest warning comes from the National Association of Manufacturers, who sent a letter today emphasizing that the “United States must meet our financial obligations to ensure global investors’ continuing confidence in the nation’s creditworthiness.” We couldn’t agree more.
Here’s the full text of the letter:
President & CEO
October 8, 2013
The Honorable John Boehner
The Honorable Harry Reid
The Honorable Nancy Pelosi
The Honorable Mitch McConnell
Dear Mr. President, Speaker Boehner and Leaders Pelosi, Reid and McConnell:
On behalf of the National Association of Manufacturers (NAM)—the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states—I write to strongly urge you to act as soon as possible to raise the statutory debt limit.
The failure of policymakers to address this critical issue is injecting uncertainty in the U.S. economy, hampering the ability of manufacturers and the broader business community to compete, invest and create new jobs. In a recent survey of NAM members, almost two-thirds of respondents said it is extremely important for the President and Congress to make progress on funding the government for fiscal year 2014 and extending the nation’s debt ceiling. More than 90 percent said that addressing the nation’s fiscal challenges was important for their company.
Manufacturers believe the United States must meet our financial obligations to ensure global investors’ continuing confidence in the nation’s creditworthiness. Our nation has never defaulted in the past, and failing to raise the debt limit in a timely fashion will seriously disrupt our fragile economy and have a ripple effect throughout the world. In particular, a default would put upward pressure on interest rates, raising both the short- and long-term cost of capital and discouraging business investment and job creation. In addition, a default would create an uncertain fiscal environment that will discourage foreign direct investment in the United States that could harm our economy for years to come.
Our nation’s economic future depends on your actions. Now is the time to rise above partisan differences and put the nation’s best interests first by addressing the debt limit. Thank you in advance for the leadership that will be necessary to appropriately resolve this critical issue.