6 Consequences if the Debt Ceiling Isn't Raised
(Chip Somodevilla/Getty Images)
If the U.S. goes into default, or runs up against the deadline, the government will have difficult decisions to make. The law will require the U.S. to continue payments for entitlement programs such as Social Security and Medicaid, while at the same time denying the government the ability to borrow in order to pay for them. Even with the most extensive cuts imaginable to domestic discretionary spending, the government would have to prioritize spending and likely halt many cherished programs.
2. High Interest Rates