Economist Tells Senate the GOP debt-limit plan would create a recession
The nation would lose nearly 800,000 jobs
A Republican plan to cut federal spending in exchange for lifting the U.S. government's debt ceiling would lower employment, slow economic growth and "meaningfully increase" the likelihood of a recession, Moody's Analytics' chief economist told a Senate committee on Thursday.
Mark Zandi told the Senate Budget Committee that U.S. GDP growth would be 1.61 percent in 2024 if the Republican plan were enacted, compared with 2.23 percent otherwise, and lead to 790,000 fewer jobs.
Republicans are pressing Democratic President Joe Biden to agree to spending cuts as a condition for raising the United States' self-imposed $31.4 trillion debt ceiling. Biden and his fellow Democrats insist Congress should raise the cap without conditions.
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