Is the government shutdown just political theater or are there larger economic consequences to this new normal of extreme political brinkmanship?
The Schwartz Center for Economic Policy Analysis (SCEPA) hosted three New School economists on the economic fallout of the government shut down. Professors Teresa Ghilarducci, Rick McGahey and Christian Proaño discussed the causes of the shutdown, the economic implications of increasing or not increasing the debt ceiling, and what will happen if an agreement is not reached by the deadline of October 17. The event ended with an audience Q&A. Watch the video below and check out the panelists' presentations.
Teresa Ghilarducci, "Economists Agree that Defaulting is Stupid"
Chair of the Economics Department at The New School for Social Research and Director of the Schwartz Center for Economic Policy Analysis
Rick McGahey, "Why Congress is Allowing a Default"
Professor of Professional Practice in Public Policy and Economics and Director of Environmental Policy and Sustainability Management
Christian Proaño, "The Dire Economic Consequences of a Default"
Assistant Professor of Economics