When it comes to the national debt ceiling, it may seem like a distant issue with little effect on our daily lives. However, Old Dominion University economist Bob McNabb explains that raising the debt ceiling can have a significant impact on the financial well-being of Hampton Roads residents, particularly military workers and families.
The Consequences of a Debt Ceiling Default for Military Families in Hampton Roads”
According to McNabb, the region relies heavily on military personnel and equipment, and a decrease in federal spending on defense can greatly affect the ability of residents to earn a living. “Political uncertainty in Washington D.C. can really impact our pocketbooks, and tip us into a prolonged recession,” says McNabb.
The professor also notes that the last time Congress debated a debt ceiling default, interest rates on US Treasuries increased. When the US Treasury gets more expensive, it means we have to pay more on existing debt, which can lead to higher interest rates on credit cards and loans.
Furthermore, if the debt ceiling is not raised, it could also spearhead the country into a deep recession. With the economic stability of Hampton Roads at stake, it’s important for residents to pay attention to the ongoing debate surrounding the national debt ceiling and how it may affect their personal finances.
“How a Prolonged Recession in Hampton Roads Can be Triggered by the National Debt Ceiling Debate”
In a nutshell, Raising the national debt ceiling may impact our pocketbooks in Hampton Roads, specifically for military workers and families, warns an ODU economist. As the region is heavily dependent on military personnel and equipment, if the federal government can’t spend money on defense, it greatly impacts the ability of residents to live, work, and earn money. Professor McNabb also highlights that last time Congress debated a debt ceiling default, interest rates on US Treasuries increased, which can lead to higher interest rates on credit cards and loans, and could also spearhead the country into a deep recession. Read also 👇👇
