Government Default: What Does It Mean? – Part IV

It’s not the same as a government shutdown, but if Washington fails to work out the debt ceiling issue by August 2nd, it could have very similar effects.

FOX News Radio White House Correspondent Mike Majchrowitz looks at what might happen to government services in Part 4 of a special series: “Government Default: What Does It Mean?”…

Unlike a government shutdown, hitting the debt ceiling would not bring government to a screeching halt. ?But lack of money would force many functions to halt…

“There is an awful lot about our daily lives that we take for granted that relate to the activities of government.”

…Scott Lilly, former House Appropriations Chief of Staff. ?A Congressional report predicts the Treasury Department would have to eliminate all spending on discretionary programs, or cut nearly 70% of spending on mandatory programs. ?Kevin Hassett, former Federal Reserve Senior Economist, thinks the choices will be political…

“The Administration will pick the things that will make the most news if they close.”

Even the Postal Service isn’t sure if it could keep delivering.

————————————————————————————————————–

In his next installment, FOX News Radio’s Mike Majchrowitz looks at what a default-triggered downgrade of the nation’s credit rating might mean for the government and you.

You can listen to Parts I, II & III of our special series “Government Default: What Does It Mean?” HERE.