What Could “Irreparable Harm” Look Like if Lawmakers Fail to Extend or Suspend the Debt Ceiling Limit?

08/12/2021
  • When lawmakers took the U.S. to the brink during the 2011 fiscal policymaking process, there were real negative financial consequences. There could be similar consequences if lawmakers follow a similar pattern in 2021. Unfortunately, this could be the best-case scenario based on where negotiations are today.
  • More severe financial consequences could occur if lawmakers allow a brief default, even if it is quickly cured.
  • There could be even more severe negative financial consequences–lasting a generation or more–if lawmakers allow an extended stalemate. We include details related to different scenarios below.

 

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