Hear how US debt default could impact your household

CNN's Christine Romans explains the consequences that could ensue if the United States defaults on its debt.

[peterdorscheid]

Stop all wage payments to members of congress immediately, until the issue is resolved..

[bobbyward]

I love how they just admit out loud we run a ponzi scheme

[Mattnoble]

The fact that the cost of living and living wage are so far apart leaves America in essentially third world status but with food stamps

[turquoiseshopaholic]

American families have been suffering for decades, through multiple presidencies. Let’s not act like it just started with the current president.

[robez]

I feel like the American government is like that guy we all know. Who is struggling financially but refuses to acknowledge it’s a problem. He keeps spending the same way he always has and won’t tell his family that they can’t keep spending money on stupid stuff. He’s already maxed out all of his credit card’s just to pay the mortgage. He is in so much debt that he can’t even afford to keep the lights on. But instead of trying to fix the situation. He just tells his family that the electric company is working on the power lines and keeps ignoring the problem. Then the neighbor asks to borrow money and instead of telling them he’s broke. He sells his wedding ring to give them money that he really should have used to pay the light bill

[factsmatter.]

Let's start with all millionaires in Congress foregoing pay !!

[CH-cdum]

Tax the billionaires and billion dollar corporations, make them pay their fair share.

[bryantgail]

This is what happens, when voters do not understand basic macroeconomics.

[LuisArcadioDeJesus]

Econ 101. Cutting the national debt would require significant reductions in government spending or increases in tax revenue, which could potentially harm the economy. For example, cutting spending on important social programs such as healthcare, education, and infrastructure could result in reduced economic growth and opportunity. Why not increase taxes on those who don’t pay their fair share on income earned? The GOP had no issue cutting taxes for the wealthy while in power; why hold the rest of hostage now?

Lots of myths the media fails to dispel when discussing this issue. Take for example how it seldom points how the United States has the world's reserve currency --the U.S. dollar. This means that other countries and investors are willing to buy U.S. Treasury bonds and hold onto them as a safe investment, even if they earn relatively low interest rates. This demand for U.S. Treasury bonds helps keep interest rates low and allows the government to borrow money at relatively low cost. In other words, we can afford to owe what we owe because of our central role in the global economy.

As already implied, it's important to understand that a certain level of debt can actually be beneficial for us. Our government issues debt in the form of Treasury bonds to fund programs, infrastructure, and other investments. This allows the government to provide necessary services and fund important initiatives that can boost economic growth and create jobs.

Sad that the media creates this false dichotomy that has many believing that both sides of the political coin are simply at an impasse when it's one side holding a gun to America's head demanding cuts to programs that provide bootstraps so that people might pull themselves up out of crappy situations, or keep them from suffering greater harm while in them.

The level of collective ignorance on these matters so crucial to our governance is saddening. This is why we end up voting against our own interests. We keep thinking government is bad while ignoring what we could do to really help it work more effectively and efficiently.

[D_Trade]

We go through this all the time. They'll drag their feet like they always do and come to some sort of an agreement at the last second

[Trent]

Oh please, this only a game these politicians are playing. They need kick backs plus they salaries, free trips, free golf, free meals etc…

[stateofdisorder]

How about stopping outsourcing and bring business back to the country, drop government pay down to our standards and stop paying past presidents.

[patrickdunn]

What’s ludicrous is that we spend the money and then fight about paying the bills later… Would make a lot more sense to approve it upfront

[sandyallen]

It's more than obvious that the people we voted for ain't got this.

[kennethmbaegbu]

If you cut half of salaries of members of the Congress, government officials and the president by half the debt will reduce to half over the next 20 years

[westbmorecertified]

They’ve been kicking this can down the road for years now. At this point it’s just theater.

[thenamenotavailable]

Social Security and Medicaid money is supposed to be in a separate fund protected, but the Republicans moved it into the general fund. We have paid for our Social Security and Medicare, and that money is not supposed to be used for anything but Social Security and Medicare. They are self-sustaining entities if the government wasnt misusing the funds.

[georgeavery]

Honestly let it crash at this point … it’s very difficult to just provide everyday living, let everything go to shit and let everyone feel it, I’ve never been this stressed in my life to provide a substantial amount of money to be able to stay (afloat) .. I live in New York State which doesn’t help anything the worst state to live in if your trying to survive lol

[johnassal]

Mention the fact that a short term default (lasting a day or so) will only cost America about half as many lost jobs as the actual GOP budget is projected to cause...

[andrewfalconer]

The debt ceiling debate is always bullshit. Both sides run up the tab when their party is in, then both sides pretend to care about spending when the other party is in.

Our two part system is failing us.