July 20, 2011 from Megan Jacobs
Fact Check: Michele Bachmann's "Courage"
Despite
warnings from nearly every economist in the country, Michele Bachmann
is doubling down on her wrong and dangerous rhetoric. Just last
week the Des Moines Register reported economists calling her claims on
the debt limit "flat wrong."
Bachmann’s
latest ad about opposing a debt limit increase shouldn’t be called
‘Courage’ it should be called ‘Dangerous.’ Failure
to raise the debt limit would be catastrophic for our economy and would
likely send us into a tailspin worse than the last. If
Michele Bachmann isn’t willing to put the best interest of the country
ahead of partisan politics on a critical issue like this, she isn’t
ready to be President.
FAILURE TO RAISE THE
DEBT CEILING WOULD HAVE DISASTROUS EFFECTS ON OUR ECONOMY AND MIDDLE
CLASS FAMILIES
Defaulting On Our Obligations Would Mean
Immediate Cuts To Social Security. “The Bipartisan Policy Center studied Treasury
Department receipts and expenditures for August 2009 and 2010 and
determined that the government likely would not have enough revenue to
pay the full $23 billion payment to Social Security recipients due on
Aug. 3 [if no agreement on the debt ceiling is reached.] On that day,
according to the analysis, the government would take in about $12
billion in taxes and other revenue but would owe $32 billion, creating
a $20 billion shortfall.” [USA Today, 6/29/11]
Mark Zandi: Failure To
Increase The Debt Ceiling Would Lead To Significant Spending Cuts And A
Recession. “’If we get to August 2
and there is no debt ceiling limit, and there has to be significant
spending cuts – even if Congress and the administration reverse
themselves days later, I think the damage will have been serious, and
we probably would be thrown into a recession,’’ [Moody’s Analytics
chief economist Mark] Zandi said.” [Christian Science Monitor, 6/28/11]
Defaulting On Our
Obligations Could Result In “The Largest Quarterly Economic Decline
Since 1947.” The Center for
American Progress reported that “a two-month failure to raise the
debt limit could result in the largest quarterly economic decline since
1947, when relevant data were first reported. That would obviously be a
bigger decline than in any quarter of the Great Recession. And the
worst quarter of the Great Recession saw a loss of nearly 2 million
jobs.” [Center for American Progress, 7/7/11]