An economist in northeast Arkansas is expressing concerns about the potential consequences if a deal on the debt ceiling is not reached by the deadline in Washington. Gary Latanich, a former professor at A-State and an economist, warns that failure to address the debt ceiling issue could lead to job losses and have a ripple effect on the local economy.
Latanich, in an interview with content partners KAIT, emphasizes that if essential government programs like social security and food stamps are halted, it could disrupt the spending patterns of individuals, leading to negative implications for local businesses. As a result, these businesses may be forced to lay off workers, creating a domino effect that further reduces spending and employment opportunities.
According to estimates from the public policy think tank Third Way, a default on the debt ceiling could potentially result in three million job losses nationwide. Furthermore, the think tank highlights the potential for increased mortgage costs and a higher national debt due to elevated interest rates.