At every turn, economists, business owners and Americans of all stripes are noting that the uncertainty created by the threat of default is bad for the economy. And yet Republicans want to extend a cloud of uncertainty for the next several monthsby kicking the can down the road….
“It creates a great deal of uncertainty for business and for all of us and it’s not good for the economy. It makes no sense," said Moody’s Economist Mark Zandi [Good Morning America, 7/27 ]
"The key word is uncertainty. We have never been in this before," said Rochester Institute of Technology economics professor Amit Batabyal. [Rochester Democrat and Chronicle, 7/27 ]
“Uncertainty is the enemy of business investment." Edward Callaway, chairman and CEO of Callaway Gardens [Atlanta Journal Constitution, 7/28 ]
The “political ground is being prepared for a short-term stop-gap compromise" that probably will push stocks and the dollar lower and leave the U.S. debt rating "extremely exposed to a damaging downgrade," said Mohamed El-Erian, chief executive and co-chief investment officer of Pacific Investment Management Co., manager of the world's largest bond fund. [WSJ, 7/25 ]
“State and local governments remain in crisis. And gridlock in Washington makes for uncertainty." [The Seattle Times, 7/27 ]
“The uncertainty that surrounds what is going on in Washington is a warning that we certainly take to heart," South Carolina Comptroller General Richard Eckstrom said to Moody’s analysts at today’s meeting. [Bloomberg, 7/27 ]
"In general, uncertainty is bad for markets and it's bad for business planning." [Denver Post, 7/27 ]
Ironically, Republican leaders only days ago seemed to agree that a short-term debt ceiling extension would create just the kind of uncertainty that they are now eager to embrace…..
Majority Leader Eric Cantor - June 22, 2011: “’I don't see how multiple votes on a debt ceiling increase can help get us to where we want to go’…’It is my preference that we do this thing one time.... Putting off tough decisions is not what people want in this town.’" [Politico, 6/22 ]
Majority Whip Kevin McCarthy - July 24, 2011: "McCarthy shied away from the idea of a short-term solution or a temporary debt ceiling increase in order to buy time on reaching an agreement on entitlement reforms." [The Hill, 6/24 ]
Republican Conference Chairman Jeb Hensarling - May 3, 2011: "I don't think the American people want tiny bites of the apple" with short-term debt limit increases… [Reuters, 5/3 ]
Ways and Means Committee Chairman Dave Camp - June 21, 2011: 'It doesn’t give you certainty. Ideally you’d like to get that settled and not have it continually a hanging-over issue.'" [The Hill, 6/21 ]
Republican Study Committee Chairman Jim Jordan - July 5, 2011: Republican Study Committee head Rep. Jim Jordan (R-Ohio) is opposed to a short-term deal, as are many other RSC members, because he believes it will remove pressure for deep cuts and changes to the Constitution. [The Hill, 7/5 ]
