The United States would enter dangerous ground if a compromise on the debt ceiling issue wasn’t reached, and the approximately 70 million beneficiaries of Social Security may receive poor benefits.
Janet Yellen, the secretary of the Treasury of the United States, stated on Monday that if the debt ceiling isn’t raised, the American government would run out of money to fulfill its debts as soon as 1 June.
In a statement made this past month, Yellen stated that “a failure on our debt could lead to a financial and economic disaster” and that “it is not likely that the federal government is going to be ready to make payouts to thousands of Americans, such as our military families and elderly who depend on Social Security.”
Early that year, the government came close to exceeding the $31.4 trillion borrowing limitation; yet, it has taken “extraordinary actions” to keep up with payouts.