Biden Admin Warns States That Federal Debt Crisis Could Trigger Recession | The Daily Wire
On September 17, CNN obtained a letter sent by the Biden administration to state governments warning that the policy would throw the economy into recession:
Raising or suspending the debt limit does not authorize new spending commitments. It simply enables the government to pay for obligations that Congresses and presidents of both parties have already approved. We expect Congress to act promptly to raise or suspend the debt limit and protect the full faith and credit of the United States — just as it did in a bipartisan fashion three times during the prior Administration and about 80 times since 1960.
Hitting the debt ceiling could cause a recession. Economic growth would falter, unemployment would rise, and the labor market could lose millions of jobs. City and state revenues often decline during a recession, as revenues fall due to declining incomes and spending… if the U.S. defaults on its debt — cities and states could experience a double-whammy: falling revenues and no federal aid as long as Congress refuses to raise or suspend the debt limit. This means critical state services will be at risk for budget cuts, from education to healthcare to pensions.
We’ve known this was coming for quite some time. Why haven’t you done anything about it?
My wife used to have a sign on her desk: “Poor planning on your part does not constitute an emergency on mine.”
That should be posted all over Washington, D.C.
Idiots.
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