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Asset Based Loan

Would Social Security not get paid post fiscal cliff?

Would Social Security recipients not get paid in a post fiscal cliff world?   Not likely, thought prospect of it is still in the cards, even if the Government does not want to go there.

The Government would almost certainly pay interest in it’s debt, otherwise the credit rating would nosedive in a hurry and future borrowing would skyrocket.    The Government knows that Seniors would be in a massive panic if their checks were interrupted.   It would be a public relations disaster.   Many seniors have no other sources of income and are not able to seek other employment.

Would Social Security not get paid post fiscal cliff Resources:

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Asset Based Loan

Who would not get paid if we pass the fiscal cliff?

The so called fiscal cliff is approaching, again.   So what question should, or would the average citizen be most interested in?    Maybe the first question would be, who will and won’t get paid?

There will be a lot of talk about how every one will be taken care of, but the harsh reality is that someone won’t get paid.   It will be a sure thing that that someone, of which there would be many, won’t be happy.  That may end up being the understatement of the year.  If this happens, in the end, all of the current politicians will end up being the big losers and public anger will be targeted in their direction.

As far as who won’t get paid?   Probably defense contractors will be very high on the list.   They are paid great sums of money but it is not a payment direct to the people.   It won’t make much difference though as it won’t be long before their employees aren’t paid.

Highway departments and maybe some unemployment recipients would be next on the target list.   Basically, the Government would want to keep paying interest on it’s debt but soon after, many citizens would stop receiving money.

 

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Asset Based Loan

Does Congress get paid if we pass the fiscal cliff?

In the debate about the upcoming fiscal cliff, politicians have talked about how many people would not get paid and many services would automatically be cut back.

However, if we pass the fiscal cliff, would the politicians themselves be unpaid during this time until the problem is resolved?   Surprisingly, it turns out that if the fiscal cliff is passed, Congressmen, Senators and the Executive branch, which means the President and Vice President, etc. would all continue to be paid.   This can certainly be seen as the legislative branches having less incentive to solve the problem immediately.

This can certainly be considered quite unfair.   The politicians create an unnatural situation in which the government cannot pay obligations of the utmost urgency such as debt and treasury bill obligations to bondholder, transportation,  potentially even parts of the military and social security and medicare, but they continue to be paid.  There has been backlash about this in the past.  There are provisions in the law which states that the politicians continue to get paid even if the government has monetary issues in other areas.

This may be somewhat understandable and tolerable to the public if it is an unavoidable situation, but the same public finds it completely unacceptable if the problem is created by
the politicians themselves.