Stakes Raised in Debt Ceiling Debate

While no headway has been made on a debt ceiling extension, congressional leaders are meeting at the White House daily to attempt to resolve differences on a long term deal with the sticking points remaining to be taxes and entitlement spending.  But, it appears both branches of government and both political parties are getting the message on the importance to the country and economy on increasing the debt limit.  It is also clear that an agreement can only be enacted with support from both political parties.  AHAM joined with several other manufacturing associations including the National Association of Manufacturers in writing a letter to all members of congress and the president to urge them to reach an agreement on the debt ceiling before the August 2 deadline.  We stressed that increased borrowing costs for the federal government influence the cost of manufacturing and home ownership.  Importantly, we also urged our political leaders to agree to a plan to substantially reduce the country’s long-term budget deficits with a goal of at least stabilizing our nation’s debt as a percentage of GDP.