[Congressional Record Volume 161, Number 158 (Tuesday, October 27, 2015)]
[House]
[Page H7194]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
DEBT CEILING
The SPEAKER pro tempore. The Chair recognizes the gentleman from
Illinois (Mr. Quigley) for 5 minutes.
Mr. QUIGLEY. Mr. Speaker, in 1983, President Ronald Reagan wrote to
then-Senate Majority Leader Howard Baker, urging him to raise the debt
ceiling. In his letter, he said: ``The risks, the costs, the
disruptions, and the incalculable damage lead me to but one conclusion:
The Senate must pass this legislation before the Congress adjourns.''
Twenty-three years later, we now find ourselves 1 week away from
defaulting on our debt for the first time in our Nation's history.
Instead of making sure we preserve the full faith and credit of the
United States, as President Reagan had done 18 times during his tenure,
some want to hold our economy hostage to extract ideological wins.
This is not the time for partisan bickering and political
gamesmanship, not when it means delaying Social Security benefits for
seniors and those with disabilities, withholding paychecks from our
brave Active Duty servicemembers, and postponing interest payments on
government-issued bonds.
We have a responsibility to live up to our obligations no matter
what. That is not politics; it is basic governing.
The longer we wait to meet our obligations and raise the debt
ceiling, the closer we get to another credit rating downgrade, a spike
in interest rates, and a severe slowdown in economic growth. This is
not an overstatement.
Let's look back at what happened in 2013 during the last debt ceiling
standoff. Just the possibility of default caused rates on Treasuries to
rise by almost half a percentage point. That cost taxpayers as much as
$70 million.
This time around, if we actually default, market forecasters estimate
that interest payments on Treasuries would increase Federal deficits by
$10 billion over the short term and by $70 billion a year after that.
That is money that wouldn't be going to critical investments in
research and development, education, and infrastructure.
On top of that, higher interest rates on Treasuries could lead to a 1
percent reduction in GDP. That would mean the loss of almost 700,000
jobs, and that is just a conservative estimate.
Make no mistake, every American would be impacted. Middle class
families looking to buy a home would face higher mortgage rates. A half
a percentage point increase in mortgage rates would increase the
lifetime cost of an average home loan by almost $19,000. Small-business
owners would face difficulties trying to secure new loans as lending
tightens up. And students will have an even harder time trying to pay
for college as student loan rates skyrocket.
We owe it to our constituents to move toward responsible governing
and away from governing by crisis, which has become all too common
around here.
The bipartisan budget package unveiled last night affirms the full
faith and credit of the United States and represents real progress for
hardworking American families who are tired of threats of default and
partisan gridlock.
Now is not the time for politics. Now is the time for thoughtful
consideration, bipartisan compromise, and, most importantly, finding a
path forward for the American people.
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