In the Nation's Interest
CED Welcomes Debt-limit Compromise
The compromise plan to raise the nation's debt ceiling - approved by the House of Representatives and the Senate through negotiations with President Obama and his Administration - avoids a catastrophic default by the United States. Though this is clearly a stop-gap agreement, without it the world likely would have lost all trust in our fiscal responsibility.
CED's business leaders will continue their work to restore the fiscal health of our country, and to reinforce the lessons of this debt crisis that demonstrate the need for budget reform. Economic recovery and growth require a long-term plan to reduce America's burden of debt.
During the debt ceiling debate, CED released a statement endorsed by 78 corporate, academic and economic leaders, urging an immediate increase in the debt limit. It explained that the prosperity and financial stability of the United States are under threat, and that protecting our future requires two steps:
- The budget of the federal government must be made sound and sustainable for the foreseeable future.
- The credit of the federal government must be guaranteed inviolable by increasing the nation's debt limit.
The statement made clear that both of these steps are essential, and that preventing either one in the name of the other would bear the same consequences as failure on both.
Now that the Congress and the President have increased the debt limit and the nation can make good on its financial obligations, our leaders in Washington must proceed to the other step and build a sound and sustainable fiscal policy. CED's Trustees will maintain their efforts to bring business thinking to bear on this vital task.