A default on federal debt could cost New York $2 billion in lost revenue, Gov. Andrew Cuomo said Wednesday.
“Congressional dysfunction has already hurt New York and the nation’s economies by fueling a lack of consumer confidence nationwide,” Cuomo said in a statement released by his office.
“Jeopardizing our full faith and credit is a new level recklessness and irresponsibility that would have dire consequences and could cause irreparable damage to our economy.”
A failure by Congress to raise the debt limit could have a catastrophic effect on the financial markets and job creation, with consequences at least as severe as the Great Recession beginning in 2008, a report this month by the U.S. Department of the Treasury said.
New York lost 324,000 jobs during that recession, and state wages fell 7.2 percent in 2009, the statement said. Taxable capital gains realizations fell 52 percent in 2008 and 41 percent in 2009, it said.
(c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email firstname.lastname@example.org.