ROANOKE, Va. – In just a matter of days, millions of people here in Virginia and across the country could be faced with financial troubles, unless the United States raises its debt ceiling.
If a deal isn’t reached by June 1, there could be financial consequences for everyone.
Experts say this is the first time the U.S. has gotten this close to defaulting on its debts.
But what does this mean for the average American?
“The impact of such a catastrophic scenario can really take three forms, the first is if you happen to be the recipient of federal funds, you might not see those payments at the time you were promised,” said Dr. David Bieri, professor of public policy at Virginia Tech.
The second area Americans would feel the effects would be cuts to federal programs like SNAP, Medicare, and Medicaid.
The third place where Americans would be affected would be in their finances.
“You might see troubles in your financial portfolios because of the default implications. And then, the economic position at home deteriorating,” said Bieri.
Dr, Bieri said all these problems stem from a more significant issue.
“The American government is spending more money than it has so it has to borrow. If we screw this one up, our credit rating will drop, people will no longer be willing to lend us money, and who will suffer, the everyday Americans, so there is a lot at stake,” said Bieri.