By Blue Future Contributor, Valerie Gregorio.
During the past couple of weeks before the October 18th deadline, U.S. President Biden managed to sign a bill that raised the U.S. debt ceiling. This action has averted a default temporarily until December 3rd, 2021. President Biden increased the government’s borrowing limit to $28.9 trillion with the bill he signed. If the U.S debt ceiling was not increased by the October 18th deadline, then the country would run out of the money to pay the nation’s bills.
According to the White House website, the debt ceiling is defined as the amount of debt the government has to pay. The amount of debt the country has depends on the policy choices made by Congress. So, what happens if the debt ceiling is not raised on time?
There are a few effects to look at.
For one, the US economy would collapse and it would lead to another recession. Many jobs would be lost. Many Americans would not receive Medicare or Social Security benefits. Also, this would impact the salaries of federal workers due to the default from the debt ceiling.
This would impact young people, especially young people already working for the government since either their parents or themselves would not get paid on time to pay bills and necessities. Not only that, many young people in private sector or minimum wage jobs would lose their own jobs and would have a difficult time finding another job that would pay the bills.
Another effect from not raising the debt ceiling is that it would lead to a crash in the stock market, which would be similar to the crash of the stock market back in 2008. It would create a panic in the market among taxpayers as interests increase.
Not only that, but due to an increase of interest rates, it would get even more expensive to buy a home, car, gas, and more in the United States. It would become more expensive to live in America when not raising the debt ceiling, which would affect poor and middle class families greatly as they try to survive.
These effects have showcased why it’s important for Congress to pass a bill that would raise the debt ceiling on time. Now that President Biden passed the bill to temporarily raise the debt ceiling, it’s only a matter of time until the December 3rd, 2021 deadline or else the debt will default.
Many young Americans entering the workforce will be affected. Not only that, many would struggle trying to help their families if the debt ceiling is not raised on time. Not only not raising the debt limit would affect their families, it would affect their futures as well. It would take a while for the US economy to recover once the debt default occurs.
This is why it is important for young people to have a voice and make sure their concerns are heard from Congress.
Congress can either further raise or suspend the debt ceiling in order for the government to meet their financial obligations on time.
About Valerie: Valerie Gregorio (she/her/hers) is a recent MBA graduate from the University of Maryland, Global Campus from California, Maryland and has a bachelors degree in Public Policy and minors in Political Science, Sociology, and Dance from St. Mary’s College of Maryland. Valerie currently works full time and experience writing for several online publications. She has been involved with a youth nonprofit, Not My Generation, which focuses on preventing gun violence and is a member of The Conversationalist community. During her spare time, Valerie loves to dance, watch the news, listen to music, and hang out with friends.
“What makes me excited to be part of Blue Future Writing Yourself into History program is that i’ll have the chance to write issues that matter and affect young people today as well as improve my storytelling skills.”