ok, i have a question for financial wizards out here on FR
my aunt, my mom’s youngest surviving sister receives SocSec disability . it’s not a whole lot but with her food stamps and some heating assistance she is able to get by.
Suppose the dollar collapses , say, next month in Sept.
What happens to the US gov’t? what happens to people in my aunt’s situation? Do they still get paid?
Yes and no.
The government will continue to pay social security, Medicare, etc., but the government will be forced to print the money to do so because it can no longer borrow enough funds or collect enough taxes. This will increase the money supply and thus drive inflation. As a result, your aunt will still receive a payment of, say, $1,000 -- but because of inflation the money will only buy, say, $500 worth of goods and services at today's prices. In this example, her spending power will be cut in half.
What happens to the US gov’t? what happens to people in my aunt’s situation? Do they still get paid?
Then we're screwed. You aunt moves in with you, a relative or starves. Doubt they will get paid.