What happens if the United States runs out of money to pay the country’s bills?
“There would be an economic and financial catastrophe”, as Treasury Secretary Janet Yellan describes it. Yellan states that the U.S. faces ‘widespread suffering’ if the debt limit is not raised.
The Republicans are making demands for drastic spending cuts to social security, health care, food programs, education, veteran benefits, and more.
Spending cuts to these programs would mean the most vulnerable in this nation would suffer the most. Millions of Americans will lose income they rely on and need to get by. This could lead to a recession, and many American jobs and business could be destroyed.
If the country goes into default, some dire consequences could ensue.
66 million Americans will stop receiving social security benefits.
2.3 million federal workers will not be paid. Meaning it could disrupt mail delivery, air traffic control, and a lot more.
There could be a potential stock market crash. Stock prices could fall by as much as 45%.
Democrats and Republicans go Head-to-Head
President Biden is set to meet with Speaker Kevin McCarthy on Monday.
McCarthy is accusing Biden of backtracking their progress because he is beholden to progressives such as Bernie Sanders.
Likewise, Biden is accusing McCarthy of being unreasonable and inflexible because he is beholden to his right flank.
Both sides are accusing each other of wanting the nation to default on its debt.
Drastic spending cuts are not the solution. Too many Americans would suffer as a result.
But at the same time, raising the debt ceiling would add to the trillions of dollars in debt the nation already holds.
What do you think the solution is? What would happen if the nation defaults on its debt?