Republican Debt Ceiling Plan Would Boost Joblessness, Analysis Shows

The deficit reduction plan put forward by House Speaker Kevin McCarthy as the price for lifting the debt ceiling would notably slow economic growth and increase unemployment next year if enacted, according to an analysis by Moody’s Analytics released Monday.

The research outfit headed by Mark Zandi forecast that gross domestic product would expand 1.6% in 2024 on a fourth-quarter over fourth-quarter basis and unemployment would end the year at 4.6% if the proposal became law. That compares with a forecast of 2.25% growth and a 4.2% jobless rate if the debt ceiling was increased without conditions, as President Joe Biden has called for.