JUST IN — “Hitting the debt ceiling could cause a recession,” in the United States says new White House memo.
— Disclose.tv (@disclosetv) September 17, 2021
A ‘manufactured’ economic recession could plunge the United States into chaos and result in ‘millions of jobs lost’ if Congress doesn’t take action on the debt ceiling, the White House warned Friday.
‘Hitting the debt ceiling could cause a recession. Economic growth would falter, unemployment would rise, and the labor market could lose millions of jobs,’ a new White House fact sheet reads.
Failing to raise or suspend the country’s borrowing limit would hinder the country’s recovery from the heavy toll the COVID pandemic took on the hospitality and travel industries, resulting in millions of Americans losing employment.
‘The U.S. economy has just begun to recover from the pandemic and a manufactured debt ceiling crisis would threaten the gains we’ve made and the future recovery. If the U.S. defaults on its obligations, the ripple effects will hurt cities and states across the country,’ the White House said.
Congress missed a deadline to raise or suspend the debt ceiling in July 2021, forcing the Treasury into extraordinary measures to keep the government funded.