By Wyatt Cravalho
We are approaching our first ever debt default, which not only will have disastrous consequences for our country, but also the whole world. Millions can potentially lose their jobs, go into debt, and more will go without substantial funding. It projected that 7.8 million jobs could potentially vanish, and unemployment could soar to a total of 8%. Overall, $10 trillion dollars of household wealth could potentially disappear. However, the repercussions could go further than just the United States. Factories in China would go out of business, without any orders coming through. The dollar, which has become a universal currency, could potentially fail, leaving many countries without a form of exchange between each other.
The current debt limit is around 31.4 trillion dollars, and we are rapidly approaching it. We are currently at a total of 31.8 trillion dollars in debt, 400 billion dollars over. On January 19th, we officially hit the ceiling.
Luckily, the White House has had multiple negotiations on the debt-limit, with one planning to occur next Monday. However, members of the republican party have threatened to let the debt limit fail if multiple spending cuts and other concessions are given. President Biden and other democrats have yet to respond. Rep. Patrick McHenry has stated that “We still have fundamental disagreements to resolve. And It’s complicated.” Progress has been made however. 12 bills are supposed to be made to resolve this conflict, and if unable to occur, one short term bill will be passed.
One of the larger current issues is how work requirements will change, which hasn’t been decided on yet. Both democrats and republicans seem to agree to recapture the unspent funding from COVID-19. Negotiators have met daily, as with the collapse of our debt ceiling the whole world will suffer a crisis.
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