What Happens When We Hit the Debt Ceiling?

Jul 27, 2011

This morning we continue our series “Debt Line”… stories focused on what it would means for Idahoans if the U.S. hits the debt ceiling.  Congress and the President face an August 2nd deadline to come up with a solution.  And if they can’t, the federal government will start to run short of cash to pay bills.  Professor Charlotte Twight is watching this closely. She teaches Economics at Boise State University.

In August, the Federal Government will take in 172-billion dollars.  That’s not enough to pay all the bills. But it is enough to cover the 78-million dollar monthly bill for Social Security and the interest on the national debt.  Our series “Debt Line” continues tomorrow with a story about what hitting the debt ceiling would mean for federal agencies in Idaho.