Klobuchar: “We need to find common ground, not battlegrounds”

In a speech on the Senate floor today, Klobuchar urged her colleagues to put aside political games and pass a bill to keep the government open and end brinkmanship over the debt ceiling

WASHINGTON, D.C. – U.S. Senator Amy Klobuchar today urged her colleagues to put aside political games and pass a bill to keep the government open and end brinkmanship over the debt ceiling. Last week, Klobuchar, the Senate Chair of the Joint Economic Committee (JEC), released a report outlining the economic consequences of debt ceiling brinkmanship.

“The American people are sick and tired of poison pill partisanship that keeps us lurching from crisis to crisis,” said Klobuchar. “Right now we need to find common ground, not battlegrounds. We need to focus on real solutions that move our country forward. That means keeping our government open so we can work on forging a long-term, balanced plan for deficit reduction.”

According to Mark Zandi, Chief Economist at Moody’s Analytics, a government shutdown lasting 3 or 4 days would cost the economy approximately 0.2 percentage points of annualized GDP growth in the fourth quarter of 2013. Shutting down the government for 3 or 4 weeks would reduce real GDP by 1.4 percentage points in the fourth quarter and a shutdown longer than two months could precipitate a recession.

In her speech, Klobuchar underscored the negative economic impacts of brinkmanship over the debt ceiling. She noted that brinkmanship over the debt ceiling in 2011 resulted in a downgrade of the U.S. credit rating, a 2,000 point drop in the Dow Jones Industrial Average and an added $1.3 billion in taxpayer-funded borrowing costs for the U.S. Treasury. Bringing the country to brink of default in 2013 could have similar, if not worse, consequences for the economy.

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