Debt Limit Default Could Cost California More Than 840,000 Jobs: Analysts

With the debt limit debate raging in Washington, D.C., some experts are projecting significant impacts on regional economies if no deal is reached before the June 1 deadline, with more workers in California expected to lose their job than in any other state if the breach is prolonged, according to a recently released report from Moody’s Analytics.

“The timing could not be worse for the economy; even without the specter of a debt limit breach many CEOs and economists believe a recession is dead ahead,” the authors wrote.

Based on a summary report released by the White House on May 3 detailing various debt ceiling scenarios, the Biden administration agrees with the dim assessment.

“An actual breach of the U.S. debt ceiling would likely cause severe damage to the U.S. economy,” the report declared.

If default occurs, and the debt breach cannot be resolved within a week, analysts expect California to be the hardest hit of all states by number of jobs lost totaling more than 840,000, with Texas’s 562,000 a distant second. (Read more from “Debt Limit Default Could Cost California More Than 840,000 Jobs: Analysts” HERE)

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