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Andy Barr Represents Everything Kentucky Families Hate About Washington

Last night Congressman Andy Barr showed us once again why he represents everything Kentucky families hate about Washington: joining a handful of the most extreme in Washington to “would be an economic disaster.” See for yourself:

  • Chief Economist of Moody’s Analytics: Default “Would be an Economic Disaster.” “The economic damage created by a government shutdown doesn’t compare to that of breaching the debt limit,” said Mark Zandi of Moody’s Analytics. “Breaching the limit would be an economic disaster."

  • Associated Press: Default Would Sink Markets, Delay Social Security Checks, Dip Economy Into Recession. “Financial markets would sink. Banks would slash lending. Social Security checks would be delayed. Eventually, the economy would almost surely dip into another financial crisis and recession.”

  • CNN: Economists Say Default Could Make Recession “Unavoidable.” “About half of the 22 economists surveyed by CNNMoney say a recession will be unavoidable if Congress fails to raise the nation’s debt ceiling before the Treasury runs out of cash later this month.”

  • Default Could Force Higher Interest Rates, Making Borrowing More Expensive for Home Owners and Businesses. “If the U.S. defaults, the Treasury will have to offer higher interest rates on its bills, notes and bonds- which, in turn, would make borrowing for home owners and businesses higher at the same time. For bond investors, a sharp rise in interest rates is pure poison.”

  • New York Times: Failure to Raise the Debt Ceiling Could “Leave the Treasury without Enough Money to Pay Social Security Benefits or the Paychecks of Troops.”“A failure to raise the debt ceiling would cause a default on government debt, shattering the world’s faith in Treasury bonds as an investment vehicle and almost certainly bringing on another economic downturn. Unlike a government shutdown, a default could leave the Treasury without enough money to pay Social Security benefits or the paychecks of troops.” [New York Times Editorial, 9/26/13]

  • Default Could Increase Costs of Student Loans by 10 Percent. Fox News reported that after default, “interest rates could rise, jacking up the cost of student loans, mortgages and other loans.” The Institute for College Access and Success reported, “For a college freshman who starts school in fall 2014, takes out the annual maximum in subsidized and unsubsidized Stafford loans, and graduates in four years, it will increase the cost of college by about $1,000. That’s a 10% increase in interest payments over 10 years.”

“While Republicans and Democrats were trying to end the crisis, Congressman Andy Barr chose to stand with the most extreme and dysfunctional in Washington over Kentucky families,” said Dan Logsdon, Chairman of the Kentucky Democratic Party. “Even worse than his government shutdown, the default that Congressman Barr supported would have a catastrophic effect on Kentucky families at every level and could even have plunged our nation into another recession. At every turn, Congressman Barr is putting his reckless and dysfunctional politics over solving problems and showing Kentucky families why he represents everything we hate about Washington.”