June 29, 2011

The Honorable John Boehner The Honorable Nancy Pelosi United States House of Representatives United States House of Representatives Washington, D.C. Washington, D.C.

The Honorable Harry Reid The Honorable Mitch McConnell United States Senate United States Senate Washington, D.C. Washington, D.C.

Dear Speaker Boehner, Minority Leader Pelosi, Majority Leader Reid, and Minority Leader McConnell,

We, the undersigned economists, urge Congress to raise the federal debt limit immediately and without attaching drastic and potentially dangerous reductions in federal spending. Not doing so promptly could have a substantial negative impact on economic growth at a time when the economy looks a bit shaky. In a worst case, it could push the United States back into recession.

The U.S. economy looks fragile at present. Economic growth has been too weak to generate sufficient new job creation. Reaching the limit on total outstanding debt could force a dramatic and sudden cut in federal spending that would destroy jobs and threaten the recovery. To remove spending from the economy at such a pivotal moment would be irresponsible.

Failure to increase the debt limit sufficiently to accommodate existing U.S. laws and obligations also could undermine trust in the full faith and credit of the United States government, with potentially grave long-term consequences. This loss of trust could translate into higher interest rates not only for the federal government, but also for U.S. businesses and consumers, causing all to pay higher prices for credit. Economic growth and jobs would suffer as a result.

Signed,

George Akerlof ˣ ^ Heather Boushey William Sharpe ˣ University of California, Center for American Progress Emeritus, Stanford University Berkeley Action Fund Robert Solow ˣ ** ^ Kenneth Arrow ˣ ** ^ Lawrence Mishel Massachusetts Institute of Stanford University Economic Policy Institute Technology

Alan Blinder Emmanuel Saez** Laura Tyson† Princeton University University of California, University of California, Berkeley Berkeley

Henry Aaron Nina Banks Barry Bluestone Brookings Institution Bucknell University Northeastern University

Jacqueline Agesa Francis Bator Ralph Bradburd Marshall University Harvard University Williams College

Richard Agesa William Baumol^ Clair Brown Marshall University New York University University of California, Berkeley Randy Albelda Amanda Bayer University of Massachusetts, Swarthmore College Ralph Bryant Boston Brookings Institution Randy Beard Mona Ali Auburn University Erik Brynjolfsson State University of New York, Massachusetts Institute of New Paltz Michael Belzer Technology Wayne State University Sylvia Allegretto Paul D. Bush University of California, Lourdes Beneria California State University, Berkeley Cornell University Fresno

Gar Alperovitz Soma Bhattacharya Jim Campen University of Maryland Pacific Institute for Research University of Massachusetts, and Evaluation Boston Alice Amsden Massachusetts Institute of Cihan Bilginsoy William Canak Technology University of Utah Middle Tennessee State University Bernard E. Anderson Josh Bivens University of Pennsylvania Economic Policy Institute Françoise Carré University of Massachusetts, Rania Antonopoulos Gail Blattenberger Boston Levy Economics Institute of University of Utah Bard College Christopher Carroll Francine Blau Johns Hopkins University Stephen Baldwin Cornell University Michael Carter Nesecan Balkan Betty Blecha University of Massachusetts, Hamilton College San Francisco State Lowell University Laurence Ball Johns Hopkins University

Lawrence Chimerine Paul Courant Loretta Fairchild Radnor International University of Michigan Nebraska Wesleyan Consulting University J. Kevin Crocker Menzie Chinn University of Massachusetts, Warren Farb University of Wisconsin Amherst Rashi Fein Charles Chittle James Cypher Harvard University Bowling Green State California State University, University Fresno Susan Feiner University of Southern Maine Carl Christ Gregory DeFreitas Johns Hopkins University Hofstra University Rudy Fichtenbaum Wright State University Kimberly Christensen Ranjit Dighe Sarah Lawrence College State University of New York, John Fitzgerald Oswego Bowdoin College Clifford Clark Wayne State University Christian Dorsey Frederick Floss Economic Policy Institute Buffalo State Richard Coe New College of Florida Matthew Drennan Robert Frank University of California, Los Cornell University Robert Coen Angeles Northwestern University Jeffrey Frankel Gary Dymski Harvard University William Comanor University of California, University of California, Los Riverside Victor R. Fuchs^ Angeles and University of Stanford University California, Santa Barbra Ronald Ehrenberg Cornell University Mark Gertler Jonathan Conning New York University Hunter College, City Ernie Englander University of New York George Washington Norman Glickman University Rutgers University Patrick Conway University of North Carolina, Robert Engle ˣ Robert Glover Chapel Hill New York University University of Texas, Austin

Michael Conyngham Gerald Epstein Devra Golbe Teamsters Union, Economic University of Massachusetts, Hunter College, City Department Amherst University of New York

Steven Goldman Rod Hissong Roger Kaufman University of California, University of Texas, Arlington Smith College Berkeley Emily Hoffman Jeffrey Keefe Nick Gomersall Western Michigan University Rutgers University Luther College Duncan Holthausen David Kennett Robert Gordon North Carolina State Vassar College Northwestern University University Marlene Kim John Green Saul Hymans University of Massachusetts, University of Michigan Boston Jonathan Hamilton University of Florida Frederick Inaba Lori Kletzer Washington State University Colby College Joseph Harrington Johns Hopkins University Alan G. Isaac James Klumpner American University Princeton University Douglas Harris University of Wisconsin, Dorene Isenberg Janet Knoedler Madison University of Redlands Bucknell University

Jonathan Harris Lovell Jarvis Timothy Koechlin Tufts University University of California, Davis Vassar College

F. Gregory Hayden Olivier Jeanne Andrew Kohen University of Nebraska, Johns Hopkins University James Madison University Lincoln Paul Johnson Mordechai Kreinin Geoffrey Heal Vassar College Michigan State University Columbia University Shirley Johnson-Lans David Kristjanson-Gural Adam Hersh Vassar College Bucknell University Center for American Progress JK Kapler Alan Krueger Donald Hester University of Massachusetts Princeton University University of Wisconsin, Madison Richard Kaufman Mordecai Kurz Economists for Peace and Stanford University Michael Hillard Security University of Southern Maine

John S. Lapp Robert Lynch Elaine McCrate North Carolina State Washington College University of Vermont University Catherine Lynde Walter McMahon Gary Latanich University of Massachusetts, University of Illinois Arkansas State University Boston Charles W. McMillion Robert Lawrence Louis Maccini MBG Information Services Harvard University Johns Hopkins University Martin Melkonian William Lazonick Arthur MacEwan Hofstra University University of Massachusetts, University of Massachusetts, Lowell Boston Peter Meyer The E.P. Systems Group. Inc. J. Williiam Leasure Mark Maier San Diego State University Glendale College William Milberg New School for Social Frederic Lee Thomas Maloney Research University of Missouri, University of Utah Kansas City S. M. Miller Jay Mandle Commonwealth Institute Paul Leigh Colgate University University of California, Davis Joseph J. Minarik Ann Markusen Committee for Economic Jonathan Leonard University of Minnesota Development University of California, Berkeley Eric Maskin ˣ Jerry Miner Institute for Advanced Study Syracuse University Henry Levin Columbia University Patrick L. Mason Daniel J. B. Mitchell Florida State University University of California, Los David Levine Angeles University of California, Peter Matthews Berkeley Middlebury College Monique Morrissey Economic Policy Institute Frank Levy Margaret Maurer-Fazio Massachusetts Institute of Bates College Philip Moss Technology University of Massachusetts, Anne Mayhew Lowell Daniel Luria University of Tennessee Michigan Manufacturing Akira Motomura Technology Center Stonehill College

Tracy Mott Dimitri B. Papadimitriou Dan Richards University of Denver Levy Economics Institute of Tufts University Bard College Alicia Munnell Tom Riddell Boston College Eva Paus Smith College Mount Holyoke College Richard Murnane Denise Robson Harvard University Kenneth Peres University of Wisconsin, Communications Workers of Oshkosh Michael Murray America Bates College John Roche George Perkins St. John Fisher College Michele Naples Bates College College of New Jersey Gerard Roland Jeffrey Perloff University of California, Marc Nerlove** University of California, Berkeley University of Maryland Berkeley Nancy Rose Eric Nilsson Joseph Persky California State University, California State University, University of Illinois, Chicago San Bernardino San Bernardino Peter Philips Joshua Rosenbloom Emily Northrop University of Utah University of Kansas Southwestern University Paul Pieper Ruben Rumbaut Joseph Nowakowski University of Illinois, Chicago University of California, Muskingum University Irvine Karen Rosel Polenske David O'Hara Massachusetts Institute of Gregory Saltzman Metropolitan State Technology Albion College University Marilyn Power Peter Schaeffer Rudolph Oswald Sarah Lawrence College West Virginia University

Duane Oyen John M. Quigley Juliet Schor University of Wisconsin, Eau University of California, Boston College Claire Berkeley Elliot Schwartz Spencer Pack Wendy Rayack Committee for Economic Connecticut College Wesleyan University Development

Elliott Sclar Mary Stevenson Kenneth Thomas Columbia University University of Massachusetts, University of Pennsylvania Boston Robert E. Scott Saranna Thornton Economic Policy Institute James Stewart Hampden-Sydney College Pennsylvania State University Laurence Seidman Marta Tienda University of Delaware James Stock Princeton University Harvard University Jean Shackelford Irene Tienda-Rumbaut Bucknell University Chad Stone Center on Budget and Policy Marjorie Turner Harley Shaiken Priorities San Diego State University University of California, Berkeley Robert Stonebraker James Tybout Winthrop University Pennsylvania State University Heidi Shierholz Economic Policy Institute Diana Strassmann David Vail Rice University Bowdoin College Lara Shore-Sheppard Williams College Cornelia Strawser Douglas Vickers University of Massachusetts, Laurence Shute Myra Strober Amherst California State Polytechnic Stanford University University, Pomona Valerie Voorheis Timothy Sullivan University of Massachusetts, Courtenay Slater Towson University Amherst

Gary Solon Nathan Tefft Christian Weller Michigan State University Bates College Center for American Progress

Peter Spiegler Peter Temin Helmut Wendel University of Massachusetts, Massachusetts Institute of Economists for Peace and Boston Technology Security

Case Sprenkle David Terkla Warren Whatley University of Illinois, Urbana Univeristy of Massachusetts, University of Michigan Champaign Boston Nancy White Christopher St. John Adam Thomas Bucknell University Maine Center for Economic Brookings Institution Policy

Charles Wilber Eduard Zaloshnja University of Notre Dame Pacific Institute for Research and Evaluation Jonathan Willner Oklahoma City University Henry Zaretsky University of Southern Mark Witte California Northwestern University Andrew Zimbalist Amy Wolaver Smith College Bucknell University

Barbara Wolfe University of Wisconsin, Madison

Justin Wolfers University of Pennsylvania

Edward Wolff New York University

Martin Wolfson University of Notre Dame

Michael Woodford Columbia University

Jeffrey Woods University of Indianapolis

Jonathan Wright Johns Hopkins University

Gavin Wright Stanford University

Linda Wilcox Young Southern Oregon University

ˣ Nobel Prize in Economics **John Bates Clark Medal ^ Past President, American Economic Association † Former Chair, Council of Economic Advisors