While House Republicans continue to deny the implications of not raising the debt ceiling against the advice of bipartisan economists and officials, several government agencies are preparing for the worst. According to the Wall Street Journal, the Social Security Administration is just one of the agencies that could be forced to default on its obligations:
“The Social Security Administration has begun warning the public it cannot guarantee full benefit payments if the debt ceiling isn’t increased.”
“When asked by the public, the agency is notifying beneficiaries that ‘Unlike a federal shutdown which has no impact on the payment of Social Security benefits, failure to raise the debt ceiling puts Social Security benefits at risk,’ according to a person familiar with the agency directive.”
“The warning was assembled after the agency consulted with the Treasury Department, which would play a lead role in determining how the government handles payments if the borrowing limit isn’t raised soon.”
Do House Republicans still want to promote default as “stabilizing”? With the wellbeing of our nation’s seniors at risk, they may want to rethink their strategy.