A combination of the US federal government having to defer some invoice, benefit, and salary payments, and miss payments on Treasury securities for several weeks would do substantial damage to financial markets.
A combination of the US federal government having to defer some invoice, benefit, and salary payments, and miss payments on Treasury securities for several weeks would lead to substantially lower employment within six months.
The requirement to periodically increase the debt ceiling measurably reduces the long-run size of the debt.
Loosening regulations on state aid to allow targeted incentives for companies in certain sectors will substantially improve the EU’s relative attractiveness for corporate investment.
Loosening regulations on state aid will give a substantial advantage to the economies of EU members with stronger public finances.
Even if looser regulations on state aid are temporary, they risk permanent damage to the EU’s longstanding competition policy regime.
