Sunday Show Roundup: "Catastrophic" Consequences Edition

Fiscal Responsibility

We were intrigued to hear Republicans say on yesterday’s Sunday shows that there has to be an deficit reduction agreement to ensure America pays its bills – despite the fact that they are walking away from a big, comprehensive compromise that would seriously reduce the deficit:

On Fox News Sunday:

Senate Minority Leader Mitch McConnell: “Nobody is talking about not raising the debt ceiling. I haven't heard that discussed by anybody… the Secretary of Treasury stated we need to do this and we're using this as an opportunity to have a discussion about doing something about spending and debt.”

On Face the Nation:

Senate Budget Committee Ranking Member Jeff Sessions: “There needs to be a deal by August 2nd. I assume [Secretary Geithner] is accurate on that date.”

While Republicans pay lip service to a deal that they keep walking away from so that they can protect tax breaks for the wealthy while they continue to advocate ending Medicare for seniors, other Sunday show guests warned of the catastrophic consequences to our economy if we fail to ensure we pay our nation’s bills:

On This Week:

IMF Managing Director Christine Lagarde: “Well, I can't imagine for a second that the United States would default. But, clearly, this issue of the debt ceiling has to be resolved, as, otherwise, there would be a hike in interest rates. There would be you know a much heavier burden to be borne by, you know, all the US taxpayers at the end of the day… Well, if you draw out the entire scenario of default, yes, of course, you have all of that, you know, interest hikes, stock markets taking a huge hit and real nasty consequences, not just for the United States, but for the entire global economy, because the U.S. is such a big player and matters so much for other countries.”

On Meet the Press:

Treasury Secretary Tim Geithner: “The United States is not going to default. We are a country that pays its bills. We're going to meet our obligations. And the leadership in Congress, Republicans and Democrats, House and Senate, understand that. Speaker Boehner, to his credit, said from the beginning we are not going to default as a country because he understands it would be catastrophic for the American economy.”

CNN State of the Union:

House Budget Committee Ranking Member Chris Van Hollen: “We need to move forward. If you don't lift the debt ceiling, every economists out there said the economy will tank.”

It’s clear Democrats and Republicans must continue to work towards a balanced deal to reduce the deficit, that includes both revenues and spending cuts, and pay our nation’s bills. Republicans say deficit reduction is one of their top priorities, and that it is critical to boosting the economy and creating jobs. Democrats hope they won’t walk away from an opportunity to reduce the deficit and give businesses and the markets certainty.