Kim, House Republicans push U.S. economy closer to default
Yesterday, Moody’s Analytics released a report highlighting the devastating economic effects of the extreme MAGA Republican plan that would enact severe spending cuts to law enforcement agencies, veterans’ health care, education programs, and recently created manufacturing jobs.
Even worse, Moody’s proclaims the GOP plan – backed by Young Kim – would send the U.S. economy closer to a recession.
From the report:
“Under the legislation, GDP growth is so weak that employment declines in the first three quarters of 2024, and the unemployment rate rises by more than a percentage point to 4.6% by the fourth quarter of 2024. Compared with the Clean Debt Limit scenario, by year-end 2024, employment is 780,000 jobs lower, and the unemployment rate is 0.36 percentage point higher.”
Moody’s also warns that McCarthy’s proposal would merely push the U.S. economy closer to default next year, because of “the considerable uncertainty created by having to address the debt limit again a year from now.”
DCCC Spokesperson Tommy Garcia:
“Economists are warning extreme MAGA Republicans that their plan would tank the U.S. economy, increase the likelihood of a recession, and kill hundreds of thousands of jobs… yet Young Kim seems unfazed. The political brinkmanship on display will only force our economy to default on its debts, resulting in a catastrophic scenario that will hurt working families across our nation. Californians will hold Young Kim accountable next year.”
