Senior citizens fear potential impacts if U.S. debt default occurs
Mahoning Valley - The deadline to increase the United States debt limit is getting close, as politicians are discussing whether or not they should take that action before June when the default is expected to loom.
A default has never happened before, and economists said it's the unknown that is worrisome. In an already-slowed economy, Kent State University economist Dr. Omid Bagheri said a default could immediately impact Americans, especially senior citizens initially.
"I don't know how any of us would be able to live," senior citizen Uta Franks of Berlin Center said.
Senior citizens are among the most vulnerable because in many cases, they survive on the help they get. Four seniors at the Austintown Senior Center said they live off of their social security.
Dr. Bagheri said a default in the U.S. debt ceiling could immediately impact any federal government assistance and could put a pause on social security checks.
"Based on regulations and law, the government should continue to service this, but when they have no money left, then they have nothing to pay," he said, "So they have to cut from here cut from there, things like social security..."
A default is a fear that seniors said they've faced for years, and can't help but worry, what if?
"That would impact me in a big way," senior citizen Charlene Lytell said, "Cause I couldn't live. That's what we live on is our social security."
Bagheri said this could impact Medicare and Veteran benefits as well.
Austintown Veteran Scott North said if that became reality, he'd be looking at hefty payments that are not an option.
"The two puffers I take, one would cost $380 a month for one puffer," North said, "So I'll be doing without a puffer, and then eventually I'll be off somewhere ready to die because I won't be able to breathe."
Bagheri predicts the government will come to an agreement like lawmakers have in years past because he said if there were a default or even temporary hold, it could be detrimental for all Americans to afford necessities and could push the economy to a recession.
"The problem is it can easily push the economy to the big recession and that would be the last push which is needed for that," he said, "and then when the economy is in trouble, every single person in trouble."
