Failure to Raise Debt Ceiling Could Turn the Economy Back Into A Recession, Says U.S. Chamber

Thursday, July 28, 2011 - 8:00pm

WASHINGTON, D.C.—U.S. Chamber of Commerce Chief Economist Dr. Martin Regalia issued the following statement on the 2nd quarter GDP report released today:

“Revisions to the GDP report over the past 3 years paint a significantly worse picture with a deeper recession and a more anemic recovery than originally thought. The recovery is clearly on a lower trajectory and it will likely be some time before the economy rebounds to the point it will create much in terms of job growth.

“It is clear that the policies of this administration, which have increased regulatory burdens and dramatically raised the level of uncertainty for small businesses, have made it extremely difficult for the economy to grow and create jobs.

“All of this means the stakes on the debt limit debate and getting our fiscal house in order are that much higher. With growth rates this low, even a small negative impact resulting from failure to increase the debt ceiling and defaulting on our obligations could turn the economy back into a recession.”

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.