With the federal government days away from facing a possible default of its debts, some grim realities seem to indicate that Mississippi would be one of the worst impacted states.
Moody's Analytics' recent report shows Mississippi would be one of the Top 3 worst impacted states by a federal default, where the government is unable to meet existing debt obligations because Congress did not raise its borrowing limit.
Moody's found that Mississippi's unemployment rate would rise significantly (as high as 9.2%) under a breach lasting through the summer. In March, it was 3.5%.
One reason Mississippi would be so severely hit by a default is that it has historically been one of the most reliant states when it comes to federal funds.
According to analysis from MoneyGeek, Mississippi ranks third in the nation in its Federal Dependency metric, behind only New Mexico and West Virginia. Alabama ranks #10 and Louisiana #11.
Treasury Secretary Janet Yellen set a June 1 date as a possible deadline to avoid default. (Clarion Ledger 05/26/23) How MS would be impacted by not raising the U.S. federal debt ceiling (clarionledger.com)
The spillover from those missed payments would likely impact people's spending habits, leading to a wide impact in the larger economy.
One reason Mississippi would be so severely hit by a default is that it has historically been one of the most reliant, if not the most reliant, states when it comes to federal funds. According to analysis from MoneyGeek, Mississippi ranks third in the nation in its Federal Dependency metric, behind only New Mexico and West Virginia.
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