To: Interested Parties
From: Rodell Mollineau, President American Bridge
RE: Republican Candidates and the Debt Limit
This past week we witnessed the Republicans and their Tea Party allies play a dangerous game of chicken with our nation’s economy. They drove the economy right to the brink threatening to let our nation fail to pay its bills for the first time in history. And while eventually the Republican leaders came to their senses and agreed to raise the debt ceiling, what was truly frightening was how Republican candidates for both President and the Senate ran to the far right advocating either default or the dangerous economic policies, deemed “cut cap and balance,” that would have sent our economy right over the cliff.
All respected economic experts agreed we had to raise our debt ceiling and instituting the “cut, cap, and balance” would be a death knell to our economy.
“This would be an unprecedented event in American history. A default would inflict catastrophic, far-reaching damage on our Nation’s economy, significantly reducing growth, and increasing unemployment… Default would not only increase borrowing costs for the Federal government, but also for families, businesses, and local governments – reducing investment and job creation throughout the economy.” [letter from Secretary of the Treasury Timothy Geithner, 5/13/11]