There was never any doubt it would be raised, neither side wants the ship to sink on their watch. Even if they hadn’t done it we would have kept borrowing – this happened once in the past and we just borrowed past this “debt ceiling”. The only real question (that hasn’t been addressed) is what does the government do when no one will loan them money any longer?
First thing is simply that we won’t pay countries we owe money to – like China. If they stopped loaning us money, we have no reason to pay them back. What are they going to do, nuke us? They may not buy from us, but since our imports far exceed our exports, that would likely turn out to be a good thing for job growth in America.
Payroll. If you work for the government, do we really need you? Armed services will be cut down to protect our soil, but we won’t be in other countries trying to push our idea of democracy on them. Things like TSA that should have never been created in the first place will once again return to the hands of private companies and again create tax revenue instead of wasted tax dollars. The Post Office will once again have to charge you for what it actually costs to mail a letter – and stop delivering the mail a couple of days a week. About 80% of the customs and immigration people (are you one of the 4 out of 5 people in the ICE office that stand around all day and chat with nothing to do?) are going to lose their job. If you’re productive/needed for public safety and education, you will still have a job – if not, you’re toast.
Big corporation? Your lobbyist aren’t going to be able to help you anymore – you’re going to lose all those tax breaks and have to pay real taxes again. And if you moved our jobs to Mexico that won’t help, expect NAFTA to be repealed. You will either make here what you sell here (generating jobs that make tax-payers) or you will pay out the nose so much to sell it here that you either move the jobs back or lose your business to new start-ups here providing the same product. Things like farm subsidies that taxpayers are paying huge corportations now – expect to lose those as well.
Freeloaders? If you depend on the government for your food, housing, clothes, and transportation – You might have a problem. Until recent history people depended on friends, family, and their church for help – and pensions from companies they spent 20 plus years working for. Now there are third generation welfare families – and that’s a problem. Sadly crime will go up, tremendously. You can’t expect anything else when you cut off support from people that have never supported themselves. We got along just fine before WWII, I’m sure we can again.
This will happen, and it’s not very far into the future. The only question is when and the longer the build-up, the harder the fall when that time arrives.
