Jason Furman: It would be ‘economically catastrophic’ if the U.S. government defaults

The battle over the debt ceiling is on as the deadline to raise it looms. Jason Furman, former chair of President Obama’s council of economic advisors, joins Andrea Mitchell to discuss the global implications if the U.S. suffers a default on its debt. “We've had government shutdowns before; that is only a small portion of the government stopping. This would be effectively a default. It could raise our borrowing costs for decades to come, which would ironically, actually raise our government spending and raise our debt,” Furman explains. “I think basically you need Kevin McCarthy to allow Democrats plus enough Republicans to have this pass the house. That's the only real formula that's workable here. The sooner we get to it, the better.”Jan. 18, 2023