TCTI: Too Crazy To Ignore
Dave Ross
social-security_treasury_irs_check_economy_980ap.jpg
If it can't borrow, the Treasury is telling us that will only write checks as actual tax receipts come in. (AP Photo/File)

Another day closer

There's a lot of scary talk about what would happen if the federal government defaults March 27.

But let me read to you what the Department of the Treasury says would happen - because that's where the buck really stops. When the Department of the Treasury talks about consequences, this is the department that writes the checks telling you exactly what it will do if Congress won't let it borrow more money.

I quote from the fact sheet: "...the government would have to stop, limit, or delay payments on [...] Social Security and Medicare benefits, military salaries, interest on the national debt, tax refunds."

If it can't borrow, the Treasury is telling us that will only write checks as actual tax receipts come in - and by one estimate, that would mean cutting spending by $74 billion a month. So let's do a little arithmetic: Cutting $74 billion a month would mean cutting about $2.5 billion a day.

The average annual salary in the United States is $50,000 a year. So a default lasting just three days would take the equivalent of 150,000 full-time jobs out of the economy.

That's the number of jobs we just added last month!

'But Dave!' you say, cutting federal jobs should SAVE money. You would think so, except that the official report on the 2011 debt crisis, when federal employees were furloughed - found that it ended up actually raising the debt by $1.3 billion.

The More You Know.

Dave Ross, KIRO Radio Morning News Anchor
Dave Ross hosts the Morning News on KIRO Radio weekdays from 5-9 a.m. Dave has won the national Edward R. Murrow Award for writing five times since he started at KIRO Radio in 1978.
Top Stories

  • Week in Photos
    Holy Week, white tiger's reflection, and Easter goes to the fishes make up this week's photos
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know a student who stands out in the classroom, school and community?
Help make their dreams come true by nominating them for a $1,000 scholarship and a chance to earn a $10,000 Grand Prize. Brought to you by KIRO Radio and Comprehensive Wealth Management.

Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.