Remarks
The Cost of US Going Over Fiscal Cliff Is Trauma Then Unending Pain
A 15% plunge in GDP, millions out of work and a full-blown financial crisis—the effects of a protracted standoff are horrendous, according to a Bloomberg Economics model.
This article is for subscribers only.
Through wars, recessions, depressions and the pandemic, the US has benefited from Treasury debt being the closest thing in the markets to risk-free. Now that hard-earned reputation may be shoved over the edge of a very tall cliff.
Fights over the government debt ceiling have become routine in Washington throughout the past quarter-century. This one promises to be especially dangerous, partly because of commitments Kevin McCarthy is said to have made to far-right lawmakers seeking deep budget cuts in exchange for their support of his becoming speaker of the House.