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hlthe2b

(101,699 posts)
3. Really? "U.S. default this fall would cost 6 million jobs, wipe out $15 trillion in wealth" WAPO
Fri Sep 24, 2021, 07:24 AM
Sep 2021

U.S. default this fall would cost 6 million jobs, wipe out $15 trillion in wealth, study says
GOP signals refusal to help Democrats raise debt ceiling, in opposition to President Biden’s spending plans
https://www.washingtonpost.com/us-policy/2021/09/21/debt-ceiling-recession-/


The United States could plunge into an immediate recession if Congress fails to raise the debt ceiling and the country defaults on its payment obligations this fall, according to one analysis released Tuesday.

Mark Zandi, chief economist at Moody’s Analytics, found that a prolonged impasse over the debt ceiling would cost the U.S. economy up to 6 million jobs, wipe out as much as $15 trillion in household wealth, and send the unemployment rate surging to roughly 9 percent from around 5 percent.

Lawmakers in both parties agree that the debt ceiling must be raised to avoid economic calamity, but their standoff over how to do so has intensified. Despite the national debt increasing by close to $8 trillion under President Donald Trump, Republicans have been adamant that they will refuse to help Democrats increase the debt ceiling, in opposition to President Biden’s spending plans.

The Treasury Department has said it will exhaust its “extraordinary measures” to pay the U.S. obligations sometime in October, giving lawmakers little time to act to head off calamity.



Sounds like a rational plan.
I don't think we have control over that. Patton French Sep 2021 #1
Why would there be a default if you pay the bill without a declared "debt ceiling"? Goodheart Sep 2021 #6
Where is the money supposedly coming from? We have to service the debt we already have!!!! hlthe2b Sep 2021 #15
Yes, exactly. (n/t) Patton French Sep 2021 #17
As illusory as the concept of money is Patton French Sep 2021 #18
It doesn't work that way. mahatmakanejeeves Sep 2021 #2
I don't follow your point. Goodheart Sep 2021 #5
If I have no money and default on my debt, who the hell do you think is going to lend to me? hlthe2b Sep 2021 #14
Really? "U.S. default this fall would cost 6 million jobs, wipe out $15 trillion in wealth" WAPO hlthe2b Sep 2021 #3
You need to re-read what I actually posted. Goodheart Sep 2021 #4
You wouldn't happen to have been issued a driver's license, would you? mahatmakanejeeves Sep 2021 #9
THAT is so NOT true. hlthe2b Sep 2021 #11
Tell that to democratic constituents who won't get their Social Security checks post-default. no_hypocrisy Sep 2021 #7
What? Goodheart Sep 2021 #8
Where the hell do you think the money is going to come from? Someone has to fund the debt hlthe2b Sep 2021 #12
I'm stunned. stopdiggin Sep 2021 #10
Ditto. hlthe2b Sep 2021 #13
Any other laws we can ignore at will? brooklynite Sep 2021 #16
That's the second time I've seen that here. Hard pass. FBaggins Sep 2021 #19
On the whole, it's not "Dems" who control the bank accounts, and would face the consequences muriel_volestrangler Sep 2021 #20
The debt ceiling is unconstitutional per the 14th Amendment meow2u3 Sep 2021 #21
This is a unique interpretation. NT mahatmakanejeeves Sep 2021 #22
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