White House says 8 million jobs are at risk
The White House published new calculations Wednesday warning about the potential damage to the U.S. economy and taxpayers if the government fails to raise the nation's debt limit. New analyses by both the Congressional Budget Office and the U.S. Department of the Treasury suggest the United States is rapidly approaching the date at which the government can no longer pay its bills, also known as the “X-date.”
"History is clear that even getting close to a breach of the U.S. debt ceiling could cause significant disruptions to financial markets that would damage the economic conditions faced by households and businesses," the summary said. "Real time data indicate that markets are already pricing in political brinkmanship related to Federal government default through higher risk premia. "
The summary posted on the White House blog was first obtained by NBC News early Wednesday. It continued:
"An actual breach of the U.S. debt ceiling would likely cause severe damage to the U.S. economy. Analysis by CEA and outside researchers illustrates that if the U.S. government were to default on its obligations—whether to creditors, contractors, or citizens—the economy would quickly shift into reverse, with the depth of the losses a function of how long the breach lasted. A protracted default would likely lead to severe damage to the economy, with job growth swinging from its current pace of robust gains to losses numbering in the millions."