The White House warned Wednesday that the U.S. could face a long-term economic disaster if the Republican opposition does not back down from its refusal to raise the public debt ceiling.

President Joe Biden’s economic advisers say more than 8 million jobs could be lost in the U.S. labor market this summer if the world’s largest economy fails to meet its fiscal obligations on time, and the default continues.

If this catastrophic scenario unfolds, GDP will shrink by 6%, while financial markets will lose 45% in the third quarter of the year, according to Agence France-Presse.

But if the U.S. sees a brief period of default, advisers affiliated with the White House’s “Council of Economic Advisers” expect the U.S. economy to suffer from rising unemployment rates and a lower recession.

This issue poses a great risk to the US as the country has never repaid its debt.

Republicans have refused to agree to raise the federal debt ceiling, which is usually a routine move unless Democrats first agree to deep spending cuts.

The administration warns that failure to raise the public debt ceiling could lead to the US defaulting on its $31.4 trillion debt.