LOS ANGELES, Oct. 10, 2013 /PRNewswire/ -- New GoBankingRates.com analysis finds America has raised the debt ceiling 78 times, contributing to Americans' lack of insight into what a default on the country's debts would truly mean.
Below is a preview of the investigation:
A recent Reason-Rupe survey found 55 percent of respondents prefer a debt ceiling reduction even at the cost of default, while a Gallup poll found 42 percent of respondents wanted their Congressman to vote against the raise, 22 percent wished for a vote in favor of the raise and 35 percent were unsure.
Economic Scenario If Debt Defaults
- The stock market could suffer a 10 percent drop – far worse than the 778 point thrashing Wall Street took when the House rejected the government's $700 billion bank bailout plan in September 2008.
- "Financial markets could be shaken to their core as was seen in late 2008, which resulted in a recession worse than any seen since the Great Depression," said Treasury Secretary, Jacob Lew.
- Standard and Poor's indicated they will devalue America's credit rating to an AA, putting it on par with countries like Qatar and Kuwait.
- Interest rates would likely double due to a combination of inflation and a sharp market reaction. CBS News recently featured these interest rate projections by GoBankingRates.com.
Affordable Care Act is 'Massive Entitlement'
Romina Boccia of the Heritage Foundation told GoBankingRates, "The Affordable Care Act is another massive entitlement. If it were to be implemented fully, the cost was estimated by the Congressional Budget Office at $1.8 trillion."
Boccia also expressed the 'trajectory' in the U.S. budget is not sustainable, suggesting the net effect of the Republican posturing will impact the economy, but it will be better in the long-term. "The economy might slow a little bit, and workers are home making their own sandwiches, but troops are getting paid and these federal workers have usually received their back-pay whether they were furloughed or not."
Read the entire article: http://www.gobankingrates.com/economy/house-republicans-united-states-economy-heroes-traitors/
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