It should be self-evident, but it’s probably worth thinking about the many ways state governments will be wrecked if Congress doesn’t raise the debt limit and the U.S. begins defaulting on payment obligations.

Medicaid? Tuition? Social Security checks? In addition to direct payments to states, the money that will be withheld normally is put straight back into commerce as spending that generates state tax revenue. Catastrophic is what it would be.

Advertisement
Previous article Thursday night line Next article Cut government spending? Easy

Note to commenters: Due to issues with spam/scams and complaints with our former comments system, we have implemented a new system called Hyvor. You must create a new account (separate from any paywall accounts you may have) in order to leave a comment. The First and Last name field will display as your author name, so use a psuedonym if you want to retain anonymity. More info