{"id":548425,"date":"2023-02-06T14:00:00","date_gmt":"2023-02-06T11:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/five-ways-a-federal-debt-default-could-hurt-americans\/"},"modified":"2023-02-06T14:00:00","modified_gmt":"2023-02-06T11:00:00","slug":"five-ways-a-federal-debt-default-could-hurt-americans","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/five-ways-a-federal-debt-default-could-hurt-americans\/","title":{"rendered":"#Five ways a federal debt default could hurt Americans"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2d22dd71000\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2d22dd71000\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/five-ways-a-federal-debt-default-could-hurt-americans\/#Five_ways_a_federal_debt_default_could_hurt_Americans\" >Five ways a federal debt default could hurt Americans<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/five-ways-a-federal-debt-default-could-hurt-americans\/#Recession_is_almost_certain\" >Recession is almost certain\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/five-ways-a-federal-debt-default-could-hurt-americans\/#Federal_benefits_in_danger\" >Federal benefits in danger<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/five-ways-a-federal-debt-default-could-hurt-americans\/#Interest_rates_spike\" >Interest rates spike<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/five-ways-a-federal-debt-default-could-hurt-americans\/#Inflation_could_lower_%E2%80%93_but_at_a_steep_price\" >Inflation could lower \u2013 but at a steep price<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/five-ways-a-federal-debt-default-could-hurt-americans\/#Stock_market_takes_a_tumble\" >Stock market takes a tumble<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"Five_ways_a_federal_debt_default_could_hurt_Americans\"><\/span>Five ways a federal debt default could hurt Americans<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<p>Americans are getting a crash course on the country\u2019s borrowing limit, as a high-stakes standoff on Capitol Hill dominates national attention.\u00a0<\/p>\n<p>Last month, the Treasury Department announced it\u2019s implementing \u201cextraordinary measures\u201d to keep the nation from defaulting on its debt, after it hit the roughly $31.4 trillion limit set by Congress more than a year ago.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p>The Treasury said the measures are expected to give Congress until at least June to reach a deal to raise the limit, which caps how much debt the government can take on fulfill its spending, and prevent what would be a first-ever default \u2013 an outcome Republicans and Democrats are hoping to avoid.\u00a0<\/p>\n<p>Below are just five reasons why the US can\u2019t afford to default.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Recession_is_almost_certain\"><\/span>Recession<strong> <\/strong>is almost certain<strong>\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"3000\" height=\"2000\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/06\/609a3e769f354be78367ddf869dbd3f6.jpg?w=900\" alt=\"\" class=\"wp-image-3517144\" srcset=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/06\/609a3e769f354be78367ddf869dbd3f6.jpg 3000w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/06\/609a3e769f354be78367ddf869dbd3f6.jpg?resize=300,200 300w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/06\/609a3e769f354be78367ddf869dbd3f6.jpg?resize=768,512 768w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/06\/609a3e769f354be78367ddf869dbd3f6.jpg?resize=1080,720 1080w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/06\/609a3e769f354be78367ddf869dbd3f6.jpg?resize=1536,1024 1536w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/06\/609a3e769f354be78367ddf869dbd3f6.jpg?resize=2048,1365 2048w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/06\/609a3e769f354be78367ddf869dbd3f6.jpg?resize=645,430 645w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/06\/609a3e769f354be78367ddf869dbd3f6.jpg?resize=50,33 50w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/06\/609a3e769f354be78367ddf869dbd3f6.jpg?resize=876,584 876w\" sizes=\"auto, (max-width: 899px) 100vw, 876px\"><figcaption class=\"wp-element-caption\"><sub>Job seekers line up outside the New Hampshire Works employment security job center, Monday, May 10, 2021, in Manchester, N.H. (AP Photo\/Mary Schwalm, File)<\/sub><\/figcaption><\/figure>\n<p>Recession fears have already been on the rise for months, as economists and lawmakers have paid close eye to the Federal Reserve\u2019s ongoing interest rate hikes in response to high inflation.\u00a0<\/p>\n<p>But the threat of a drastic slowdown would rise exponentially if the nation were to default later this year, experts say.<\/p>\n<p>\u201cIt would affect lending and borrowing and financial markets,\u201d New York University economics professor Mark Gertler explained, adding that combination of less borrowing and less spending, would trigger recession.\u00a0<\/p>\n<p>The U.S. economy would also crater as it loses billions of dollars in federal spending that the government can no longer follow through on, including crucial <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social<\/a> safety net programs for millions of Americans.<\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\"><\/aside>\n<h2><span class=\"ez-toc-section\" id=\"Federal_benefits_in_danger\"><\/span>Federal benefits in danger<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1400\" height=\"787\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/socialsecurity_gettyimages_socialsecurity.jpg?w=900\" alt=\"\" class=\"wp-image-3807531\" srcset=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/socialsecurity_gettyimages_socialsecurity.jpg 1400w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/socialsecurity_gettyimages_socialsecurity.jpg?resize=160,90 160w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/socialsecurity_gettyimages_socialsecurity.jpg?resize=300,169 300w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/socialsecurity_gettyimages_socialsecurity.jpg?resize=768,432 768w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/socialsecurity_gettyimages_socialsecurity.jpg?resize=1280,720 1280w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/socialsecurity_gettyimages_socialsecurity.jpg?resize=645,363 645w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/socialsecurity_gettyimages_socialsecurity.jpg?resize=320,180 320w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/socialsecurity_gettyimages_socialsecurity.jpg?resize=256,144 256w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/socialsecurity_gettyimages_socialsecurity.jpg?resize=512,288 512w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/socialsecurity_gettyimages_socialsecurity.jpg?resize=640,360 640w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/socialsecurity_gettyimages_socialsecurity.jpg?resize=876,492 876w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/socialsecurity_gettyimages_socialsecurity.jpg?resize=960,540 960w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/socialsecurity_gettyimages_socialsecurity.jpg?resize=50,28 50w\" sizes=\"auto, (max-width: 899px) 100vw, 876px\"><figcaption class=\"wp-element-caption\"><sub> In this photo illustration, a Social Security card sits alongside checks from the U.S. Treasury on October 14, 2021 in Washington, DC. (Photo illustration by Kevin Dietsch\/Getty Images)<\/sub><\/figcaption><\/figure>\n<p>No one is sure which obligations could fall to the wayside if the Treasury is unable to fulfill all of its financial duties.<\/p>\n<p>Republicans have proposed legislation seeking to prioritize certain duties as a backup plan. Proposals floated by some would put handling Social Security benefits and Treasury bonds at the top of the list, along with military salaries and veterans benefits, according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.semafor.com\/article\/01\/31\/2023\/republicans-have-a-plan-b-if-the-us-breaches-the-debt-ceiling-itd-still-be-a-disaster\">Semafor<\/a>.<\/p>\n<p>But that doesn\u2019t mean everyone would get paid\u2014including thousands of federal employees.<\/p>\n<aside class=\"ad-unit ad-unit--mr3_ab\"><\/aside>\n<p>\u201cIf the government could legally and technologically do that, it means that more people wouldn\u2019t get whatever is not on that list,\u201d Wessel said, pointing to IRS refunds that could also be impacted by a default, or even \u201cpaying the FBI.\u201d\u00a0<\/p>\n<p>\u201cSome obligation of the federal government is not going to be met,\u201d he added. \u201cAnd that would be a landmark and it would always raise the question in the future, \u2018Are these guys going to do this again?\u2019\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Interest_rates_spike\"><\/span><strong>Interest rates spike<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"5454\" height=\"3636\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/12\/b40cc1ee14e8483ab2b5b931565109ec.jpg?w=900\" alt=\"\" class=\"wp-image-3785252\" srcset=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/12\/b40cc1ee14e8483ab2b5b931565109ec.jpg 5454w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/12\/b40cc1ee14e8483ab2b5b931565109ec.jpg?resize=300,200 300w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/12\/b40cc1ee14e8483ab2b5b931565109ec.jpg?resize=768,512 768w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/12\/b40cc1ee14e8483ab2b5b931565109ec.jpg?resize=1080,720 1080w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/12\/b40cc1ee14e8483ab2b5b931565109ec.jpg?resize=1536,1024 1536w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/12\/b40cc1ee14e8483ab2b5b931565109ec.jpg?resize=2048,1365 2048w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/12\/b40cc1ee14e8483ab2b5b931565109ec.jpg?resize=645,430 645w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/12\/b40cc1ee14e8483ab2b5b931565109ec.jpg?resize=50,33 50w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/12\/b40cc1ee14e8483ab2b5b931565109ec.jpg?resize=876,584 876w\" sizes=\"auto, (max-width: 899px) 100vw, 876px\"><figcaption class=\"wp-element-caption\"><sub>A For Sale sign is posted in front of a home in Sacramento, Calif., Thursday, March 3, 2022. On Thursday Freddie Mac reports on this week\u2019s average U.S. mortgage rates. (AP Photo\/Rich Pedroncelli, File)<\/sub><\/figcaption><\/figure>\n<p>Multiple experts warn the nation could see higher interest rates on its debt as a result of default.<\/p>\n<aside class=\"ad-unit ad-unit--mr4_ab\"><\/aside>\n<p>U.S. Treasury bonds are currently regarded as among the world\u2019s safest assets, affording the government a reputation as a reliable borrower on the global stage. And that standing allows the government to borrow more money to fulfill its financial obligations.<\/p>\n<p>\u201cWe benefit as Americans from the fact that our government can spend more than it takes in revenues to do all the things we want the government to do,\u201d David Wessel, director of the Hutchins Center on Fiscal and Monetary Policy at the Brookings Institution, explained. <\/p>\n<p>\u201cWe benefit from the fact that, as a society, we don\u2019t save as much as other societies and they lend us their savings by buying Treasury bonds.\u201d<\/p>\n<aside class=\"ad-unit ad-unit--mr5_ab\"><\/aside>\n<p>But if the nation defaults, Wessel and other experts warn the U.S. would be seen as less trustworthy borrower, and have to pay more on its interest. <\/p>\n<p>The headaches wouldn\u2019t stop there and depend on how long a default lasts. Wessel warned that the effects would rush across the economy and even into consumers\u2019 pockets.<\/p>\n<p>\u201cIf you look at the bond market, when yields in the bond market go up, mortgage rates go up,\u201d Wessel said. \u201cSo, everybody might have to pay a little more to borrow.\u201d<\/p>\n<aside class=\"ad-unit ad-unit--mr6_ab\"><\/aside>\n<h2><span class=\"ez-toc-section\" id=\"Inflation_could_lower_%E2%80%93_but_at_a_steep_price\"><\/span><strong>Inflation could lower \u2013 but at a steep price<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1400\" height=\"787\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/11\/26b3042672a840c8845165cc3108f1ba-e1673993975781.jpg?w=900\" alt=\"\" class=\"wp-image-3747586\" srcset=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/11\/26b3042672a840c8845165cc3108f1ba-e1673993975781.jpg 1400w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/11\/26b3042672a840c8845165cc3108f1ba-e1673993975781.jpg?resize=876,492 876w\" sizes=\"auto, (max-width: 899px) 100vw, 876px\"><figcaption class=\"wp-element-caption\"><sub>Specially equipped cars sit in a parking lot Thursday, Nov. 17, 2022, in Nashville, Tenn. (AP Photo\/Mark Humphrey)<\/sub><\/figcaption><\/figure>\n<p>Experts say inflation could also lower, but not in the way most would hope.<\/p>\n<p>Some say prices would fall as a result of a slower economy in such circumstances as demand weakens, but not if they were already hindered by shortages.<\/p>\n<p>\u201cIt\u2019s like saying, \u2018Well, the good <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> is your arm doesn\u2019t hurt anymore because we amputated it,\u2019\u201d Wessel said.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr7_ab\"><\/aside>\n<p>\u201cIt wouldn\u2019t do anything to speed the semiconductors going to the auto industry or deal with the fact that hotels are raising prices because their electric bills are going up and they can\u2019t hire workers,\u201d he added.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Stock_market_takes_a_tumble\"><\/span><strong>Stock market takes a tumble<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"683\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/12\/GettyImages-1449448720.jpg?w=900\" alt=\"\" class=\"wp-image-3790822\" srcset=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/12\/GettyImages-1449448720.jpg 1024w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/12\/GettyImages-1449448720.jpg?resize=300,200 300w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/12\/GettyImages-1449448720.jpg?resize=768,512 768w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/12\/GettyImages-1449448720.jpg?resize=645,430 645w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/12\/GettyImages-1449448720.jpg?resize=50,33 50w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2022\/12\/GettyImages-1449448720.jpg?resize=876,584 876w\" sizes=\"auto, (max-width: 899px) 100vw, 876px\"><figcaption class=\"wp-element-caption\"><sub>A board on the floor of the  New York Stock Exchange (NYSE) shows a steep decline on December 15, 2022 in New York City. (Photo by Spencer Platt\/Getty Images)<\/sub><\/figcaption><\/figure>\n<p>Stock portfolios would take a serious hit if the nation defaulted on its debt, s<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ing retirement accounts and draining crucial sources of revenue for major companies.<\/p>\n<p>\u201cThe stock market would fall hard, credit markets would tighten up then that restricts the flow of credit,\u201d said Greg McBride, analyst at Bankrate.com. \u201cAnd that\u2019s where the economic damage really comes into play.\u201d<\/p>\n<p>That flow of credit, McBride explained, would be restricted for other borrowers, including state and local governments, corporations and consumers, who \u201cwould be increasingly locked out in a tighter credit environment.\u201d<\/p>\n<p><strong>Likelihood of a default?<\/strong><\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"5580\" height=\"3720\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/02\/b4b4d6fec9db4b498117180fc629b091.jpg?w=900\" alt=\"Joe Biden, Kevin McCarthy, Chuck Schumer\" class=\"wp-image-3839662\" srcset=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/02\/b4b4d6fec9db4b498117180fc629b091.jpg 5580w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/02\/b4b4d6fec9db4b498117180fc629b091.jpg?resize=300,200 300w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/02\/b4b4d6fec9db4b498117180fc629b091.jpg?resize=768,512 768w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/02\/b4b4d6fec9db4b498117180fc629b091.jpg?resize=1080,720 1080w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/02\/b4b4d6fec9db4b498117180fc629b091.jpg?resize=1536,1024 1536w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/02\/b4b4d6fec9db4b498117180fc629b091.jpg?resize=2048,1365 2048w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/02\/b4b4d6fec9db4b498117180fc629b091.jpg?resize=645,430 645w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/02\/b4b4d6fec9db4b498117180fc629b091.jpg?resize=50,33 50w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/02\/b4b4d6fec9db4b498117180fc629b091.jpg?resize=876,584 876w\" sizes=\"auto, (max-width: 899px) 100vw, 876px\"><figcaption class=\"wp-element-caption\"><sub> President Joe Biden, right, at the top of a meeting with congressional leaders to discuss legislative priorities for the rest of the year, Nov. 29, 2022, in the Roosevelt Room of the White House in Washington. From left are House Minority Leader Kevin McCarthy of Calif., Senate Majority Leader Chuck Schumer, of N.Y., and Biden.(AP Photo\/Andrew Harnik, File)<\/sub><\/figcaption><\/figure>\n<p>Republicans and Democrats alike want to avoid a default, but are deeply divided over how to do it. .<\/p>\n<p>GOP lawmakers have vowed not to vote to raise the debt ceiling without major spending cuts despite promising they would not let the U.S. default. Even so, Republicans have yet to unify behind any proposal to cut down the federal debt and are sparring over how much to cut defense spending, if at all.<\/p>\n<p>At the same time, Democrats have instead pressed for a clean bill to raise the debt limit without conditions, accusing Republicans of holding the economy hostage for their partisan goals.<\/p>\n<p>The battle is one of the most significant tests the newly-divided Congress faces this year.\u00a0<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thehill.com\/policy\/finance\/3843239-five-ways-a-federal-debt-default-could-hurt-americans\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Five ways a federal debt default could hurt Americans Americans are getting a crash course on the country\u2019s borrowing limit, as a high-stakes standoff on Capitol Hill dominates national attention.\u00a0 Last month, the Treasury Department announced it\u2019s implementing \u201cextraordinary measures\u201d to keep the nation from defaulting on its debt, after it hit the roughly $31.4&#8230;<\/p>\n","protected":false},"author":1,"featured_media":548426,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/66d548b955e14b489c3a2aaf9f6f6c0f.jpg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[134343,116734,134471,10574,124783,991,35813,71525,115,134354,91261],"class_list":["post-548425","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-campaign","tag-debt-ceiling","tag-debt-ceiling-showdown","tag-education","tag-international","tag-joe-biden","tag-kevin-mccarthy","tag-national-security","tag-news","tag-nexstar-media-wire-news","tag-recession"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/548425","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=548425"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/548425\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/548426"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=548425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=548425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=548425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}