Washington, D.C. — The United States could face default potentially as early as June 1, 2023 if Congress fails to take action to raise, suspend, or eliminate the debt limit. A new Center for American Progress article reviews the potential immediate and long-lasting harm to the economy that would result should Congress fail to act.
Default—or even a close brush with default—would have a devastating impact on the U.S. economy and the global financial system. Likely consequences of default include massive job loss; a sharp rise in interest rates; raising costs for families, business, and federal borrowing; and delays benefits and services Americans rely on. Default would also have far reaching economic and foreign policy ramifications; undermining confidence in the dollar as the basis for global trade; and battering supply chains struggling to recover from the COVID-19 pandemic
“Business leaders and economists across the ideological spectrum agree that even a close brush with default could be catastrophic and undermine recent economic progress” said Jean Ross, senior fellow and author of the article. “Default itself could lead to a global recession as deep as that caused by the financial crisis.”
Read the column: “Default would have a catastrophic impact on the economy” by Jean Ross
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