Insights for Navigating an Uncertain World
“In the event of a default, the Treasury Department would have to figure out how to keep paying out tens of billions of dollars in Social Security benefits, federal salaries and more.”
https://www.politico.com/news/2023/05/09/debt-limit-white-house-00095867
Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times. View more posts
This is just a periodic ritual. You have to be a real lumpy type to believe that a new higher credit limit is an act of paying the bills. How long does this fantasy continue? Some very respectable people would say indefinitely. Others would argue strongly that it is presently terminal.