OK if that really happened...what would happen to the average:
Laborer in manufacturing
Banker
Government worker
Corporate drone
Service worker
Homeowner with a mortgage
Saver
Investor
Person on social security/food stamps/etc
I’d imagine the fallout would turn the entire country more or less into the West Bank.
The point is we’re heading toward bankruptcy anyway. Best to do it on our own timetable and retain some assets rather than sell everything off just so the politicians can continue with their spending spree and then end up in the same place just a little later.
We wouldn’t be the first country to default on our debts, nor would we be the last. Nor would it be the first time that the U.S. had effectively defaulted on it’s debt. That said, a default would definitely stink in the short term. It’s unfamiliar territory for Americans and for that reason, a bit scary. A “west bank” scenario is not likely. Several countries have defaulted since 2000 and they seem to be OK. Not great, but they seem to have come through it without a civil war, mass starvation, killing fields, or anything all that dire.
Here are some countries that have defaulted since 2000: Ecuador, Ukraine, Peru, Argentina, Moldova, Uruguay, Dominican Republic, and Belize.