Report Warns U.S. Economy Could Cripple if Republicans Force Default

For months, Democrats and non-partisan economists have warned the American people that House Republicans toying with the full faith and credit of the United States to force their partisan cuts could reap irreparable harm on the U.S. economy. A new report from Moody’s analytics confirms these warnings, stressing that if Republicans push the U.S. to default, there could be “seven million jobs lost and a 2008-style financial crisis.”

While Democrats continue to push for a routine and clean debt ceiling raise to pay down America’s already accrued bills, the report also warns if Republicans were to force the “dramatic” cuts they are proposing, the U.S. could fall “into recession in 2024, cost the economy 2.6 million jobs and effectively destroy a year’s worth of economic growth over the next decade.” The analysis also warns, “low-income Americans would most likely bear a disproportionate brunt of the economic pain.”

This report comes as Kevin McCarthy’s own chief of staff, Dan Meyer, admits McCarthy is in a “nearly impossible bind, having vowed to advance a budget that eradicates the deficit in a decade without touching Medicare & Social Security or increasing taxes.”

Whether Republicans try to cut Social Security, Medicare, Medicaid, food security programs, veterans benefits, or other essential government funding, one thing is clear: House Republicans’ vows to hold the American economy hostage in order to advance their MAGA agenda could reap major harm on everyday families whether or not Republicans are successful.

DCCC spokesperson Tommy Garcia:
“House Republicans are showing the American people they are unserious, willing to hold the lives and financial well being of everyday families hostage to force their extreme MAGA agenda. Republicans’ economic plans won’t improve the lives of everyday families, but they could cause a deep recession, major job loss, and permanent damage to families’ pocketbooks.”

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