Default could have $2 billion effect in NY
By KELLY FAY
A default on the national debt would be seriously detrimental to the fiscal state of New York and negate recent progress, the Governor's Office said. Based on past recessions, potential state revenue loss is estimated to be as high as $2 billion.
"Congressional dysfunction has already hurt New York and the nation's economies by fueling a lack of consumer confidence nationwide. Jeopardizing our full faith and credit is a new level of recklessness and irresponsibility that would have dire consequences and could cause irreparable damage to our economy," Gov. Andrew Cuomo said.
A recent study by the U.S. Treasury Department titled The Potential Macroeconomic Effect of Debt Ceiling Brinksmanship looks at the impact a default would have on state's financial markets, consumer spending and economic growth. According to the report, a debt limit impasse could have catastrophic effects on the state's fiscal health and could last for more than a generation.
According to the Treasury Department, a government shutdown alone negatively impacts the economy, which would only be amplified by a default. The department noted that real Gross Domestic Product has grown over the first half of the year at an annual rate of 1.8 percent. Private sector economists projected it would grow to a rate of 2.8 percent by 2014.
Read more at
http://www.legislativegazette.com/Articles-Top-Stories-c-2013-10-11-85431.113122-Default-could-have-2-billion-effect-in-NY.html
