NEW YORK (Reuters) - Not raising the U.S. debt
ceiling would be be bad for the economy and would force the
government to default on either its bonds or domestic programs,
the top White House economist said Thursday.
"It would not be good for the economy," said Austan
Goolsbee, chairman of the White House Council of Economic
Advisers.
If the ceiling isn't raised before early August, the
government would have to default on its bonds, social security,
Medicare or military, though he added it was impossible to
answer the question on which one the United States would
choose.
Speaking at the Council on Foreign Relations, Goolsbee also
said it was time to focus on growth in the economy as the
government shifts out of its advanced role stimulating the
economy through incentivizing the private sector.
(Reporting by Leah Schnurr; Editing by Padraic Cassidy)
© 2013 Thomson/Reuters. All rights reserved.