The Economic Consequences of the US Debt Ceiling Crisis.

The White House warns that a protracted default on the US debt could be as bad as the Great Recession, with unemployment rising by 5% and the stock market plunging by 45%. Unlike previous recessions, the government would not be able to step in and throw money at the economic wounds. Congress will have to act within its limited number of working days to strike a deal to prevent a default within the next weeks or months. The clock is ticking, and the best-case scenario would be August 8. The Treasury could mint a $1 trillion platinum coin or invoke a clause in the 14th amendment, but the Biden administration is not budging on a clean debt ceiling increase to stave off economic catastrophe in as soon as a month.