GENERICO.ruEconomicsThe White House predicted the loss of millions of jobs in the event of a default

The White House predicted the loss of millions of jobs in the event of a default

WASHINGTON, May 4. A protracted US default scenario could lead to the loss of about eight million jobs in the country, according to a report by the White House Council of Economic Advisers, released by the US administration.

“Moody's recent analysis using a different macroeconomic model came to a similar conclusion. They predict that with a net increase in the debt ceiling, job growth will continue over the next few quarters, adding 900,000 jobs. However, under a protracted default scenario, job losses would amount to nearly eight million people, a striking difference similar to our own projections,” the document says.

The administration said that without the ability to spend money on support measures such as extended unemployment insurance, the federal and local governments will be helpless in a protracted default. In this case, ordinary citizens will also inevitably have problems with loans from banks, as they will be forced to sharply raise interest rates in the face of uncertainty.

“While politicians have so far avoided causing such damage to the American and even global economy so far in our country’s long history, virtually every analysis we have reviewed indicates that default leads to immediate recession risks,” said Joe Biden administration consultants.< br />
The US Treasury notified Congress back in January of the start of “extraordinary measures” in connection with the estimated achievement of the national debt ceiling of 31.381 trillion dollars. The White House is demanding that Congress raise the ceiling without any strings attached, and the House of Representatives, controlled by the Republican opposition, is tying the move to budget cuts.
Meanwhile, Treasury Secretary Janet Yellen previously warned that without a decision on the public debt, the government would not be able to continue to meet all of its obligations, possibly by June 1.


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