Prolonged debt ceiling breach could cost 163,000 Missouri jobs, analysis says

As time runs out for Congress and the White House to strike a deal to raise the Treasury’s borrowing limit, a new analysis from Moody’s Analytics assesses the potential ramifications of a debt ceiling breach.

A prolonged breach, described by Moody's as one that "drags on for weeks through much of the summer," could cost more than 163,000 jobs in Missouri and about 7.4 million nationally. A shorter breach could lead to the loss of 48,000 jobs in the state and 607,000 across the country.

If the limit is breached, the analysis predicts the economic fallout will be most severe around military bases. In Missouri, areas surrounding Whitman Air Force Base and Fort Leonard Wood could be susceptible.

Medicare and Medicaid payments could also be disrupted, affecting not only users of both but rural clinics with little financial wiggle room as well.

In some ways, though, Missouri is prepared to withstand such a financial crisis, according to the analysis. The state has fewer federal government fixtures, and its physical distance from Washington creates a buffer. In the long run, as stocks and bonds begin to be affected, retiree states like Florida will begin to feel more backlash.