The Debt Ceiling Is Scarier Than the Fiscal Cliff

In a recent column in the Wall Street Journal, Advisory Council member Alan Blinder argues that the impact of hitting the federal debt ceiling at the end of February would have worse consequences than going over the fiscal cliff. He writes that if the parties fail to reach a compromise to raise the debt limit would cause spending to shrink by 6% of GDP, sending the nation into recession, and likely to a second ratings downgrade and higher borrowing costs for years to come. Read the full piece here.