Statement on Reinstatement of the Statutory Debt Limit

NEW YORK — Michael A. Peterson, President and CEO of the Peter G. Peterson Foundation, commented today on the reinstatement of the statutory debt limit. In a separate report released today, the Peterson Foundation estimates that lawmakers will have to act to raise the debt limit by October or November of 2015 to avoid a technical default.
Peterson said,
“Lawmakers have the opportunity and responsibility to work together to ensure that we don’t return to the damaging pattern of government-by-crisis. As the economic recovery is finally taking hold, uncertainty, brinksmanship and self-inflicted crises are exactly what we don’t need. Our elected leaders should use this as an opportunity to work together over the coming months on a bipartisan plan that sets our nation on a sustainable long-term fiscal path. Doing so would not only strengthen the current recovery, but help build a foundation for future growth, opportunity and prosperity.”
In 2013, Macroeconomic Advisers published a study analyzing the economic effects of fiscal brinksmanship. The study found that the fiscal brinksmanship in 2010-2013 cost the economy 900,000 jobs, and that an actual default would have even more severe economic consequences.
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