According to the White House, they warned people on Wednesday that 8 million jobs will be lost due to a protracted debt default. There are enormous breaks in the debt ceiling with a potential break as well. The White House economist spoke "a protracted default would likely lead to severe damage to the economy, with job growth swinging from its current pace of robust gains to losses numbering in the millions". The debt could be defaulted as soon as June 1st of Congress doesn't act according to Treasury Secretary Janet Yellen. Brinksmanship is a short default and a protracted default the report estimates impact under. It basically would knock out 0.3 percentage points off annual gross domestic product by wiping out 200,000 jobs. About half a million jobs would be suffered sending the unemployment rate up by 0.3 percentage points.
https://www.cnn.com/2023/05/03/economy/white-house-debt-default/index.html
It is very interesting to see the artificial debt ceiling for the US government and how Congress will act to tackle this issue. I would say that according to a lot of economists, there is no set debt limit, so raising the ceiling shouldn't be a problem, compared to the effect not doing it will cause.
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