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The debt ceiling will most likely be raised. Well, most likely will be raised. There are few more hurdles but I think it will be raised.
However, many are still asking me what could happen if worse comes to worst and we default on our debts.
Is not paying an option? Of course it is. It’s not a very good one though.
If you are wondering what will happen if we don’t pay, listen up.
We will be forced to drastically cut back on disaster relief, Medicaid, school funding and other programs. Billions of dollars in state aid and state-run but federal funded programs could be pulled back.
Imagine pulling back on resources for the education of our children. That’s unacceptable.
The US Treasury has said extraordinary measures to avoid default will run out by October.
The memo outlines several key programs that would be halted if Congress fails to increase the debt limit, including disaster relief efforts, Medicaid and the Children’s Health Insurance Program, infrastructure funding, education, public health and child nutrition.
The memo also warned that “hitting the debt ceiling could cause a recession.” It suggested that “Economic growth would falter, unemployment would rise, and the labor market could lose millions of jobs.”
Cities and states could experience a double-whammy: falling revenues and no federal aid as long as Congress refuses to raise or suspend the debt limit. This means critical state services will be at risk for budget cuts, from education to healthcare to pensions.
So, yes. I want a resolution because we cannot afford to not help people during these times.
However, we all know we can’t control this part of our financial system and government. Officials will do what they want to do.
That’s why we can only think about ourselves.
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