Testimony The Costs of Debt Limit Brinksmanship
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Testimony before the Joint Economic Committee
Donald Marron
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In this testimony before the Joint Economic Committee, Donald Marron offers Congress four pieces of advice as it faces the looming debt limit. First, Congress must increase the debt limit; failing to do so will result in severe economic harm. Second, Congress should not wait until the last minute to raise the limit; as we saw in 2011, such brinksmanship is economically and fiscally costly. Third, our economy remains fragile, so Congress should avoid self-inflicted shocks. Finally, the long-run budget outlook remains challenging and deserves attention, but the near-term fiscal priorities are funding the government and increasing the debt limit.
Research Areas Economic mobility and inequality Taxes and budgets
Tags Fiscal policy Federal budget and economy
Policy Centers Urban-Brookings Tax Policy Center