The Devastating Impact of US Debt Default on Jobs and Families

Moody's Analytics predicts that a prolonged breach of the US debt ceiling could lead to the destruction of over 7 million jobs, a severe recession, and a plunge in GDP and stock prices. Even a brief debt default could cause significant damage to the economy, with GDP sliding by 0.5% and unemployment increasing by 1 million Americans. Treasury Secretary Janet Yellen warns that the country will run out of cash to pay its debts in early June. The White House is hosting near-daily talks with Republicans to strike a budget agreement before the pivotal June deadline.