"Urgent Warning: Impacts of US Debt Default on Americans"

1 min read
Source: ABC News
"Urgent Warning: Impacts of US Debt Default on Americans"
Photo: ABC News
TL;DR Summary

Millions of Americans who rely on federal payments could be negatively impacted if the US government is unable to pay its bills come June 1. Economists agree that the first debt default in US history would be an economic catastrophe and could trigger a global financial crisis. Payments to 67 million Social Security beneficiaries could be halted, but a 1996 law provides an escape clause that allows the Treasury Department to continue paying Social Security benefits, even if there is a delay in raising the debt ceiling. The US credit rating would most likely be downgraded, sending interest rates higher and making it more expensive for businesses and consumers to borrow money.

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