Notice how it is never the welfare checks for people that never worked that is never at risk. It’s always the paltry Social Security checks that people earned from a lifetime of working and contributing to society.
It is not really a financial crisis unless they stop sending out money for welfare, EBT cards, Section 8 Housing, Food Stamps, Aid to Dependent Children, Medicaid, et al.
If that were to happen, it might be time to start worrying.
It’s an interesting question, because the SS checks supposedly come from the Trust Fund, but since the Treasury needs to sell marketable bonds to redeem the non-marketable Trust Fund bonds, I’d say they would have to delay SS payments, too.
It is supposed to be a “self supporting “ program. So it was claimed back in 1964.
https://www.ssa.gov/history/ssa/usa1964-2.html
Self-Supporting
“The program is designed so that contributions plus interest on the investments of the social security trust funds will be sufficient to meet all of the costs of benefits and administration, now and into the indefinite future—without any subsidy from the general funds of the Government.
Both the Congress and the Executive Branch, regardless of political party in power, have scrupulously provided in advance for full financing of all liberalizations in the program.”
That’s good. Next up scare the older generations. That’ll work.
It shouldn’t. SS is a self funding actuarial based program.
But illegals will do just fine
What about deferring the pay of government employees?
Democrats are talking about “default” and their useful idiots in the press echo the language. This is utterly dishonest.
Failure to raise the debt ceiling would simply mean that the fedgov can’t borrow any more money. That would cause a world of hurt because we are currently funding much of the government through wild borrowing. With no debt limit increase, the feds would have to go on a cash basis immediately. That means cutting eleventy seven gazillion dollars of borrowed money out of the current budget overnight.
It couldn’t happen to a nicer bunch of people.
The fedgov could still spend every dollar that comes in. Debt service is legally obligated to be paid first. Then would come entitlements. Remaining programs would be funded as cash became available.
Default is something entirely different. Default is debt cancellation. The fedgov would announce that it is cancelling debt, in whole or in part. If it were full default, this of course would destroy every pension plan and bank in the country, and a lot of other institutions internationally. And going forward, it would be a cold day in hell before anyone bought U.S. government securities again, and then there would be a hefty premium attached to reflect political risk. Today the dollar is still the world’s reserve currency and institutions consider U.S. government securities to be investments. After default, buying U.S. securities would be like buying Venezuelan debt. Not a good thing to do unless you trust Maduro.
The leftist are such liars. One of the few things exempted from a debt ceiling debate is....yep...Social Security.
They just try to scare seniors.
I want the EBT cards to be at zero for a month, I have enuff popcorn, I think.
Joe Bidet was recently asked this very important question—and he mumbled incoherently...it sounded something like...
it depends..
;-)
No.
Only if it would benefit the RAT party.