Debt Controversy and Potential Effects on Seniors
This blog usually only covers past studies and developments but today this post will discuss a current event that may have a huge effect on every American but specifically senior citizens.
President Obama and Congress have yet to come to an agreement to raise the debt ceiling even though the US Treasury has said that on August 2nd it will run out of money to pay for the country’s bills. Senate GOP leader Mitch McConnell recently said “a real solution to the U.S. debt problem was unlikely while Obama was in office”.
This presents a scary situation for all Americans but in particular for the elderly because Obama has warned that these seniors could suffer first due to lack of Social Security checks. “I cannot guarantee that those checks go out on August 3rd if we haven't resolved this issue…there may simply not be the money in the coffers to do it,” Obama said. Other areas like veterans’ checks and disability benefits could also be affected if a compromise is not reached soon. Senator Harry Reid has seconded Obama’s statements today but the Republicans continue to balk, calling these “scare tactics” by the Democrats.
Hopefully our country’s leaders will come to their senses and put together a deal that allows our government to continue to function normally. Otherwise, not only will seniors see their benefits end, but “this could have catastrophic consequences for our economy as well as the economic stability of the rest of the world…threatening to take us into a second Great Depression”.
 Reuters, “Obama: seniors could be hurt without debt deal”, http://reut.rs/pcZuM7
 David Min, Associate Director for Financial Markets Policy, Center for American Progress, “The Big Freeze”, 10/28/2010, http://www.americanprogress.org/issues/2010/10/big_freeze.html