The NAM joined with almost 240 groups to send a letter to members of the House and Senate today urging them to arrive at a compromise to pass a continuing resolution to keep the government funded and to raise the debt ceiling to avoiding defaulting on our nation’s loans. Failure to do either represent a dangerous path for the U.S. economy and for long term growth potential.
The NAM and business groups told Congress:
“We appreciate fully the importance of restraining federal spending, both discretionary spending and mandatory spending, to reduce federal budget deficits, contain the growth of federal debt, and thereby re-establish fiscal discipline in the near-term and for the long haul. However, with the U.S. economy continuing to underperform, the federal government needs to maintain its normal operations pending a successful outcome of broader budgetary reforms. It is not in the best interest of the employers, employees or the American people to risk a government shutdown that will be economically disruptive and create even more uncertainties for the U.S. economy.
Likewise, we respectfully urge the Congress to raise the debt ceiling in a timely manner and remove any threat to the full faith and credit of the United States government. However, entitlement spending remains the main driver of these deficits and high debt levels and must be addressed. Today we spend $1.6 trillion on just three of the nation’s entitlement programs – Social Security, Medicare and Medicaid. In 10 years, the total price for these programs will soar to $3 trillion.”
The letter makes the position of the business community absolutely clear – failing to pass the CR and raise the debt ceiling will have serious ramifications – but there is a critical need to address entitlement reform and mandatory spending to get our fiscal house in order. Until we do so, the U.S. can not escape this cycle of financial uncertainty.
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