The clock is ticking for the U.S. to avoid a default on its debt, and some are sounding the alarm about potential disruptions to Social Security and Medicare.
On Thursday, Jan. 19, the U.S. outstanding debt hit its statutory limit.
The debt limit or debt ceiling is the total amount of money the U.S. can borrow to meet its legal obligations including Social Security and Medicare benefits, as well as military salaries, tax refunds, interest on the national debt and other payments.
In a Jan. 13 letter, Treasury Secretary Janet Yellen warned House Speaker Kevin McCarthy, R-Calif., Senate Majority Leader Chuck Schumer, D-New York, and other congressional leaders of the possible “irreparable harm” that could come to the U.S. economy, Americans’ livelihoods and global financial stability if the problem goes unresolved.
“I respectfully urge Congress to act promptly to protect the full faith and credit of the United States,” Yellen wrote.
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On Thursday, the U.S. began…
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