Most Economic Analysts Believe that Defaulting Would Lead to a Recession
WOODBRIDGE, V.A. — U.S. Representative Abigail Spanberger yesterday joined Prince William County business leaders to sound the alarm on how a potential debt ceiling default would be devastating for Virginia’s economy.
On Monday, Spanberger joined the Prince William Chamber of Commerce to highlight how a debt ceiling default, as well as the sheer act of toying with a default, would have serious economic impacts for Prince William County’s small businesses, federal employees, and overall economy. Additionally, they spoke out against the hyper-partisanship that has driven lawmakers to this point — and they revisited what happened to Prince William County during previous government shutdowns and recessions.
During the event in Woodbridge, Spanberger delivered remarks alongside Prince William Chamber of Commerce President & CEO Robert Sweeney, as well as Appliance Connection owner Marty Nohe. Click here to watch a recording of the full event.
“Engaging in fiscal politicking is not an effective way of addressing our nation’s financial challenges,” said Sweeney. “It simply delays the tough decisions and has real costs for the economy and my neighbors. These are real people. I am proud to represent our 1,300 members here in Prince William County. It’s time to figure out how to address the growing mismatch between spending and revenue and put us on a sustainable fiscal path.”
“What we’re talking about is the fate of the U.S. economy and the fate of businesses like mine here at Appliance Connection,” said Nohe. “We have about 50 employees who live either here in this county or in one of the surrounding counties — and they all rely on a predictable paycheck to meet their family’s needs. But our business can only thrive if the economy of the country — and the economy of our county — is robust and consumer confidence is strong. And that’s why on behalf of my company and all of the members of the Prince William Chamber of Commerce, we’re calling on Congress to stop playing political games with the budget and end the hyper-partisanship that has led to the possibility of a debt ceiling default.”
“Just like Americans must pay their mortgage and their credit card bills, Congress must pay our bills or suffer severe economic consequences moving forward,” said Spanberger. “This effort is not about attacking one side or the other — but it’s about reinforcing the need for common sense. That’s why I’m committed to going back to Congress and reinforcing that shutdowns, recessions, and defaults are bad for Virginia families and bad for Virginia businesses. I want to thank the Prince William Chamber of Commerce for making clear that we need to prevent a debt ceiling default and keep Virginia strong.”
A recent report from the U.S. Chamber of Commerce said that “it is impossible to overstate the negative consequences that would occur if the United States were to default on its debt.”