US Debt Ceiling Standoff Threatens States' Economies and Healthcare Systems

Moody's Analytics chief economist Mark Zandi said that most state economies will be hit hard if there is a debt limit breach, although the economic pain varies. Washington, D.C., where 1 in 4 jobs are tied to the federal government, would be hardest hit, becoming the "poster child" for a financial disaster. States with large federal facilities, such as national laboratories or military bases, would be next in line. Even a short debt ceiling breach, in which the government defaults for less than a week before lawmakers raise the government's borrowing limit, would likely push the economy into a recession, according to Moody's.