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No One Else Wants a Shutdown. Why are House Republicans Threatening One?

Sep 30, 2013

REPUBLICANS ARE THREATENING A GOVERNMENT SHUTDOWN...

 ...BUT BUSINESS AND ECONOMIC LEADERS DON'T WANT A REPUBLICAN GOVERNMENT SHUTDOWN:

Moody's Chief Economist Mark Zandi: "Harsh political vitriol, threats of shutting down the government, and the possibility of not fulfilling the government's financial obligations have weighed heavily on the collective psyche. This has significant economic consequences. Businesses are more reluctant to invest and hire, and entrepreneurs are less likely to attempt startups. Financial institutions are more circumspect about lending and households are more cautious about spending. While many factors are at work here, Washington's heated budget battles are a significant contributor." [Written Testimony Before the Senate Budget Committee, 9/24/13]

US Chamber of Commerce, Business Roundtable, and almost 240 Business Groups: "It is not in the best interest of the employers, employees or the American people to risk a government shutdown that will be economically disruptive and create even more uncertainties for the U.S. economy." [Politico, 9/27/13]

PIMCO CEO Mohamed El-Erian:  "Mohamed El-Erian, the CEO of bond fund firm PIMCO, thinks a shutdown could have several negative effects. 'First, it increases uncertainty which makes companies less willing to invest in new plants, equipment and hiring. Second, it forces the Fed to continue with experimental policies, the impact of which are uncertain,' El-Erian told CNN." [CNN, 9/23/13]

Morgan Stanley: "There is, however, a direct arithmetic impact on GDP. Compensation of nondefense employees and civilian defense employees makes up about one-fifth of real federal spending and about 1.5% of GDP. Eliminate a third of that in a shutdown as non-exempt workers stay home, and GDP is haircut 0.5%. Annualized, this reduces quarterly GDP growth by around 0.15 percentage points per week of shutdown." [Business Insider, 9/25/13]

....OTHER REPUBLICANS DON'T WANT A REPUBLICAN GOVERNMENT SHUTDOWN:

Sen. Susan Collins (R-ME): "What is abundantly clear is that the American people do not want dysfunction in Washington to lead to another government shutdown. A shutdown will only further damage our struggling economy and reverse an already slow climb out of recession. I voted against Obamacare and have repeatedly voted to repeal, reform, and replace it, but I disagree with the strategy of linking Obamacare with the continuing functioning of government-a strategy that cannot possibly work." [Press Release, 9/30/13]

Senate Minority Whip John Cornyn (R-TX):   "So I say to my friends who say we ought to shut the government down to get rid of ObamaCare that it will not work." [Floor Remarks, 9/27/13]

Sen. Mark Kirk (R-IL):  "I am one of those who says, let's not shut down the government just because you don't get everything you want," Kirk said in an interview. "That is an overwriting of our mandate." [St. Louis Post-Dispatch, 9/23/13]

Sen. Richard Burr (R-NC): "I said it was the dumbest idea I'd ever heard of," Burr said. "I still think it's a dumb idea, because you can't defund Obamacare." [Huffington Post, 9/18/13]

Sen. Kelly Ayotte (R-NH): "I think we should make every effort we can to make sure we stop this law but I don't believe they should shut down the government to do so, and I don't think that is a strategy that is good for America." [CNN, 9/18/13]

Sen. Orrin Hatch (R-UT): "My personal belief is the only way to get rid of Obamacare is to be intelligent and smart about it and gradually just work on it, work it through," said Utah Sen. Orrin Hatch, the top Republican on the Finance Committee, which has jurisdiction over health care. "But to expect the government to shut down is not the way to do it." [Politico, 9/17/13]

Sen. John McCain (R-AZ):  "Many Republican senators who made their opposition to Obamacare explicit cautioned against a government shutdown, arguing it would not stop the health law and could have dire political [sic] ramifcations [sic]. 'It is a suicide note,' said Sen. John McCain, R-Ariz. 'I was here the last time we saw this movie.'" [National Journal, 9/12/13]

....AND THE AMERICAN PEOPLE DON'T WANT A REPUBLICAN GOVERNMENT SHUTDOWN::

CNN/ORC Poll: Six in 10 Want a Budget Agreement to Avoid a Shutdown: "And six in 10 questioned in the survey say they want Congress to approve a budget agreement to avoid a government shutdown, and if it happens, most people say a shutdown would be a bad thing for the country." [CNN, 9/30/13]

CNN/ORC Poll: 68% of Americans Say Even A Short Shutdown Would Be a Bad Thing for the Country: "Some 68% say a shutdown for a few days would be a bad thing for the country, with that number rising to nearly eight in 10 for a shutdown lasting a few weeks." [CNN, 9/30/13]

CBS/NY Times Poll: 80% of Americans Say Government Shutdown is Unacceptable Way To Negotiate: "Eighty percent of Americans say threatening a government shutdown during budget debates is not an acceptable way to negotiate; only 16 percent think it is. While partisan divides may exist on a number of issues, majorities of Democrats, Republicans and independents all agree that threatening a shutdown of the government is not the way to negotiate." [CBS News, 9/25/13]

By: DPCC