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m Explaining, what can be the impact of current US debt as of 2023. Tags: Reverted Visual edit |
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Commenting on [[fiscal sustainability]], former Federal Reserve Chairman [[Ben Bernanke]] stated in April 2010 that "Neither experience nor economic theory clearly indicates the threshold at which government debt begins to endanger prosperity and economic stability. But given the significant costs and risks associated with a rapidly rising federal debt, our nation should soon put in place a credible plan for reducing deficits to sustainable levels over time."<ref>Bernanke, Ben S. (April 27, 2010). [http://www.federalreserve.gov/newsevents/speech/bernanke20100427a.htm "Speech before the National Commission on Fiscal Responsibility and Reform: Achieving fiscal sustainability"], Federalreserve.gov; retrieved February 2, 2011.</ref>
As of current US Debt crisis S<ref>{{Cite web |date=2023-09-30 |title=What Happens if US Defaults on it's Debt? |url=https://www.thelivingcost.com/2023/09/what-happens-if-us-defaults-on-its-debt.html |access-date=2023-10-01 |language=en}}</ref><ref>{{Cite web |last=Safdar |first=Abdul |date=30/09/2023 |title=WHAT HAPPENS IF US DEFAULTS ON IT'S DEBT? |url=https://www.thelivingcost.com/2023/09/what-happens-if-us-defaults-on-its-debt.html |url-status=live |access-date=01/10/2023 |website=THE LIVING COST}}</ref>cenario, if the default is brief and the treasury prioritizes paying investors but not, say, senior Social Security, the already fragile economy would have a mild recession with close to a million jobs loss.
In another scenario, the economic collapse would be comparable to 2008, costing more than 7 million jobs and wiping out $10 trillion in personal wealth if the default continues for weeks and investors aren't paid. to avoid both scenarios, the House, Senate and White House must agree to raise the debt ceiling before the June 1 deadline. Many experts call it the game of chicken, but a game where we all lose if they don't raise it before the clock runs out.
=== Interest and debt service costs ===
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