A new report shows just how devastating Marco Rubio and Senate Republicans’ opposition to raising the debt ceiling would be for the U.S. economy. A U.S. debt default would cost nearly 6 million jobs and eliminate $15 trillion in household wealth.
Rubio has been adamant in his opposition to raising the debt limit. Now it’s clear that he’s willing to risk Floridians’ jobs and savings in another shameful attempt to score political points.
America could plunge into an immediate recession if Congress fails to raise the debt ceiling and the U.S. defaults on its payment obligations this fall, according to one analysis set to be 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.
Despite increasing the national debt by close to $8 trillion under President Trump, Republicans have been adamant that they will refuse to help Democrats increase the debt ceiling in opposition to President Biden’s spending plans.
“This economic scenario is cataclysmic. … The downturn would be comparable to that suffered during the financial crisis” of 2008, said the report, written by Zandi and Bernard Yaros, assistant director and economist at Moody’s Analytics.
Historically, both parties have come together to ensure the debt ceiling gets raised. Turning it into a political pawn would jeopardize international faith in the U.S. government, driving the cost of borrowing higher even if it is not breached.