White House Warns of Repercussions of Debt Default, Unemployment Threatens 8 Million Americans

The White House has warned that if the Republican opposition does not back down from its refusal to raise the public debt ceiling, the United States OF America (USA) will witness an economic disaster if it falls into a state of default of public default for a long time.

President Joe Biden's economic advisors said that if the world's largest economic power fails to meet its financial obligations on time, and this default is prolonged, the American labor market may lose more than eight million jobs this summer.

The advisors added that if this catastrophic scenario materializes, the gross domestic product (GDP)

will contract by 6 percent, while the financial markets, for their part, will lose 45 percent during the third quarter of the year.

But if the United States witnessed a state of default for a short period, then the advisors who are members of the “Council of Economic Advisers” in the White House expect that the American economy will suffer from a rise in unemployment rates and a lower recession.