Boehner's Plan To Use Debt Ceiling Backed By 150 Economists

More than 150 economists back House of Representatives Speaker John Boehner's call to match any increase in the debt limit with spending cuts of equal size, according to a letter released by the Republican leader's office on Wednesday.

The letter will give Boehner an important talking point as he and his fellow House Republicans meet with President Barack Obama at 10 a.m. to discuss the debt limit and other fiscal issues.

"An increase in the national debt limit that is not accompanied by significant spending cuts and budget reforms to address our government's spending addiction will harm private-sector job creation in America," the letter said.

Signatories include Nobel laureate Robert Mundell of Columbia University and economists from schools like New York University and Georgetown University, as well as conservative think tanks like the American Enterprise Institute.

The Treasury Department has warned that the country could face a default that could push it back into recession and roil markets across the globe if it does not raise the $14.3 trillion debt limit by Aug 2. Treasury has been tapping federal employee pensions and other funds to pay the nation's bills since it reached the current debt limit on May 16.

Republicans say they will not back any increase that does not include steep spending cuts and other limits to ensure that debt stays at a manageable level.

The Republican-controlled House on Tuesday defeated a bill that called for a debt-limit increase without conditions.

In talks led by Vice President Joe Biden, Republicans and Democrats have identified hundreds of billions of dollars in possible spending cuts, and both sides say they could ultimately find more than a trillion dollars in deficit savings.

But they must resolve a dispute over the biggest-ticket items. Democrats say they will not consider cuts to popular health benefits until Republicans consider tax increases.

(Reporting by Andy Sullivan; Editing by Peter Cooney)

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[knott wrench]

05:09 PM on 06/12/2011

150 economists, who probably have Never Held a Blue Collar job, because the "fix" was always in for them to go throughout their entire school years without having to work and then on to College and step right in Daddy's or Uncle's Firm.

If they're associated with GOP Crab Boehner, that right there is a reason to Question Everything they say. Remember, Boehner is in the same Crab Cauldron as Mitch Mcconnell and Karl Rove.

[VegasPhil]

05:32 PM on 06/03/2011

Boehner's a joke!

The letter's a joke!

The 150 economists are a joke!

That is my expert opinion!

And I can get a letter from 150 opinionst's to back me up!

[cheo]

03:27 AM on 06/03/2011

Taking a good look at the people on Boehner's list should be first and foremost. It's kind of the economic equivalent of their list of scientists against Climate Change.

GOP-Aligned Economists: “Don’t Take Us Seriously”
By Jonathan Bernstein
http://www.washingtonmonthly.com/ten-miles-square/2011/06/gopaligned_economists_dont_tak029946.php

Why You Shouldn't Trust Speaker Boehner's Economists, Part II
June 01, 2011 11:01 am ET — Matt Finkelstein
http://politicalcorrection.org/blog/201106010003

[Opinionated1111]

07:12 PM on 06/02/2011

Economists - are like Congressmen - no matter the political climate - no matter what party is in office - no matter what happens in our country - ECONOMISTS ALWAYS HAVE A JOB!!!!!

[EdCorner]

06:56 PM on 06/02/2011

Yeah, sure, 150 economists but they didn't ask any economists that matter. Why not choose just 5 top leading economists? Rather baffle them with BS Bhoner? Of course

[cheo]

03:33 AM on 06/03/2011

Because the top 5 wouldn't have said what was said in letter.
Taking a look at who is on the list definitely impairs the letter's credibility.
I was just looking at your micro-bio--I like it.
(there is a typo. Fiat justicia is with a 'J')

[EdCorner]

10:28 AM on 06/03/2011

Actually it's spelt both ways, you know how those Latins are with their language, lol

[Clarence Wood]

06:29 PM on 06/02/2011

GIVE TO THE RICH, LET EVERYBODY ELSE RIDE BICYCLES !!! YEP YOU BETCHA????

[olephart]

06:09 PM on 06/02/2011

These are the same economists who indorsed the deregulation that led to the financial meltdown. These are the same economists who supported the tax cuts that yielded no growth and trillions in debt. We’ve seen their work and they as a group prove the adage that economics is the only profession where you can be wrong your whole life and still be counted an expert.

[iridium53]

05:58 PM on 06/02/2011

One can find 150 economists that will sign virtually anything - including that Ayn Rand was a genius.

So what?

And, how much did they pay them?

[troutster]

06:18 PM on 06/02/2011

Maybe they're the ones bought and paid for by the Koch brothers at Florida State University. Do you know the story? Where the brothers bought the right to approve every new hire in the economics department. This is a big story. Donors insisting that they have final approval of people hired into state run univerisity.

[Matt12]

05:28 PM on 06/02/2011

But Many Of The "150 Economists" Have Made Baseless Predictions, Endorsed Dubious Theories (URL at the bottom of page)

At Least 46 Economists From Boehner's List Signed Letter Calling 2003 Bush Tax Cuts "Fiscally Responsible." The following economists signed both Boehner's letter and a 2003 letter to George W. Bush calling the Bush tax cuts "fiscally responsible:

Stacie Beck
Bruce Bender
Michael Boskin
Donald R. Booth
Phillip Bryson
Todd G. Buchholz
Samantha Carrington
John Cogan
John P. Cochran
Coldwell Daniel
Ronnie H. Davis
Stephen J. Dempsey
John B. Egger
Frank Falero
June O'Neill
Dave Garthoff
Earl L. Grinols
Stephen Happel
Kevin Hassett
Joel Hay
Larry Lindsey
Robert Tamura
David Malpass
Michael L. Marlow
Allan Meltzer
James C. Miller III
John E. Murray
George R. Neumann
Seth W. Norton
Lee Ohanian
Richard W. Rahn
Christine P. Ries
Raul H. Rubin
Gary J. Santoni
Thomas R. Saving
Robert Haney Scott
William Shughart II
James F. Smith
Clifford F. Thies
Leo Troy
Richard Vedder
Michael E. Williams
Michael Wohlgenant
Gary Wolfram
Gene C. Wunder
Benjamin Zycher

As Media Matters has noted, contrary to the claim that the Bush tax cuts were "fiscally responsible," economists have stated that the Bush administration's tax policies failed to make the economy grow faster and contributed to a decline in median household income. [Speaker Boehner letter, 6/1/11; The White House, 2/12/03; Media Matters, 8/9/10]


http://mediamatters.org/research/201106010020

[ksmith111]

04:21 PM on 06/02/2011

Without raising revenue how in the world are they going to balance the budget. This is accounting 101 in essence they want spending cuts from the lowest common denominator and give any savings to the largest corporation. These economists are bough and paid for.

[SFGiantsfan]

08:39 AM on 06/03/2011

You cut spending. That would be accounting 100, the prerequisite of 101!

Seriously. We are like out of control people with credit cards and are not calling that into question. Hmmm, the ENTIRE world cut back in the last few years - our Government expanded. Our spending increased. The financial crisis didn't apply to our Government. That is the root of the problem.

Raising revenue might need to happen, but I wouldn't raise it a cent until we cut up the cards.

[TheCommons]

03:38 PM on 06/03/2011

That sounds facially plausible, but I doubt it's correct. A nation, its government, is not the equivalent of a private household. It's not even necessarily like a business entity, although like a corporation it theoretically has perpetual life. Unlike a person or an ordinary business it cannot go utterly broke as long as it has the power to tax and the capacity to collect.

It was not the first duty of government to become a victim of the financial crisis. It was the duty of government to try to ameliorate it. With the economy shrinking it is hardly surprising that the government "expanded" by contrast. Had the government acted to contract in 2008, it would only have deepened the crisis.

[Joseph LeCompte]

03:06 PM on 06/02/2011

Basically the US Government giving away its product for free. Hop many businesses do that. NONE! If you want the Govt to run like a business you have to charge for your products and services.

[Joseph LeCompte]

03:03 PM on 06/02/2011

Between 2008 and 2010, a dozen major US corporations—including General Electric, ExxonMobil, and Verizon—paid a negative tax rate, despite collectively recording $171 billion in pretax US profits, according to an analysis by Citizens for Tax Justice. Taken together, these companies' tax burden was -$2.5 billion, and ten of the companies recorded at least one no-tax year between 2008 and 2010. I understand some benefits of low taxes but theses companies are welfare queens.

[mjtaylor22]

03:00 PM on 06/02/2011

sounds alot like the coalition of nations that went to iraq.. 47 with no armies...2000 British and 150,000 us troops........

[ManwithaParachute]

03:00 PM on 06/02/2011

150 economists....

Nearly all of them have majored in Home Economics in High School.

[Bigrcube]

01:02 PM on 06/02/2011

Are these the 150 economists on Roger Ailes' and his boss Ruppert Murdoch's payroll as FAUX Noise "contributors" ?!?!

[Wanderland]

04:32 PM on 06/02/2011

At least 46 of these fine Bozos also signed on to the Bush tax cuts as "fiscally responsible."
http://mediamatters.org/research/201106010020

Another includes Robert Mundell, the "father of the Euro." That worked out great for Ireland, Spain, Portugal and Greece.