Debt Ceiling Still In Debate While Default For The U.S. Is Looming

Republicans propose to raise the limit along with cutting costs while Democrats argue the limit can be raised without having any strings attached.

The U.S. could expect to see a default on its debt if lawmakers do not soon come to an agreement regarding the debt ceiling.

A default would mean the government would not be able to meet all of its financial obligations, which includes salaries paid to federal workers and payments to social security recipients.

Nearly a sixth of government spending is put toward national defense, a quarter of which is to pay military personnel.

If the country cannot pay it’s national defense bills, cities with large military bases face a potentially massive fall-out, encompassing missed payments, rising debt and a significant pull-back in spending that would cut into local businesses’ incomes.

Republicans propose to raise the limit along with cutting costs while Democrats argue the limit can be raised without having any strings attached.

Many meetings have been held and House Speaker Kevin McCarthy shared that a possible agreement could be reached soon.