CHARLOTTE, N.C. — What happens to social security benefits if the US defaults on its debts?
Let's connect the dots.
A total of 66 million Americans receive social security. A payroll tax on some earnings, plus revenue from other programs covered nearly all of the trillion bucks in social security benefits paid out last year.
The impact of any delay in payments would depend, in part, on the calendar.
Treasury officials say bills are paid in the order in which they come due,
and it may not be possible to change the department's systems to prioritize some obligations over others.
If checks are delayed because of default, beneficiaries would be compensated for any shortfalls or delays after Congress resolves its stalemate.
Some economists believe that won't be necessary, saying the treasury department could use social security's trust fund to make sure folks receive monthly payments on a normal schedule. But others aren't so sure about that.
No matter what, a default could create many challenges for households already struggling to pay the bills.
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