Economist Mark Zandi offered a fairly optimistic forecast for the U.S. economy this week, predicting that growth would strengthen to 4 percent by year end. He added, however, that if Congress fails to raise the debt ceiling in a timely fashion, his forecast would be “blown out of the water.”
At the Bipartisan Policy Center, we have just released an independent analysis of the “on the ground” facts associated with a failure to raise the debt limit by August 2, the projected date after which the government will be unable to meet all of its spending obligations. We have tried not to understate or overstate the risks. We provide no rhetoric, no political advice and no instructions to participants in the discussion, but rather our analysis.