If the economy is wrecked in this standoff, Democrats – as the incumbents – have more to lose. Because they are in power, they are likely to be blamed when unemployment rises and the stock market tanks. For many Democrats, the cost of defeat at the ballot box is higher than that of any short-term concessions to Republicans. If their party regains unified control of Congress and the presidency next year, these could be reversed, they argue.
How could the debt ceiling crisis end? Here is what Biden and McCarthy want