Ep. 429: Why Raising the Federal Debt Ceiling Matters

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This week on the Pete the Planner Show, Peter and Damian are back in the chairs with the most hilarious banter of all of 2021!

No time to listen?  Here’s a preview of what happened and when:

Show Notes:

WOULD YOU WORK A GRUELING JOB PAYING $3,500? PER WEEK FOR 6 MONTHS?: [4:31]

  • I read and article. Here are the particulars: AIM World Services is offering jobs at military base Camp Atterbury that pay up to $3,500 per week; from janitors to line cooks, but not all jobs qualify for that pay. It’s the food service workers that qualify. Here’s the catch: it’s 75 hours per week. 6 days per week at 12 hours per day, but you end up with +$90,000. Would you do it?

    • DAMIAN: No, for one reason: I’d be away from my family for entirely too long.
    • PETE: People can change their financial life forever, but they have to go through, what I think is, a nightmare of an experience to do it.
    • DAMIAN: Some people have made this kind of work a part of their lifestyle already. Others can make a quick change to right their financial situation quickly. Others are already comfortable being away from your family.
    • PETE: Tough work conditions, being in hot, tight quarters, on your feet for all 12 hours, every day, back to back.
    • DAMIAN: This is maybe good for someone young who needs to bank some major cash quickly, maybe to start a business.

 

WHY THE DEBT CEILING MATTERS:  [23:15]

  • Le’t see what’s at stake. My job is to help you understand what happens if the federal debt ceiling doesn’t get raised. It’s been raised dozens of times, and every party who’s been in charge has raised it.
    • DAMIAN: Spending will cap out. Basically, our country needs a raise on its credit limit to pay all our obligations in time.
    • PETE: Playing this on party lines can be like playing chess, causing problems for the party in charge. And some people are fiscally conservative, so it’s not solely a political issue.
    • Here’s what would happen if the debt ceiling wasn’t raised:
      • 50M seniors would stop receiving Social Security payments or see delays
      • 30M families could stop seeing Child Tax credit payments or see delays
      • US Military servicemembers could stop receiving paychecks
      • Veterans benefits could stop or see delays
      • US Postal works could stop receiving paychecks
      • Doubt in the US market could tank the markets
      • FEMA funding could stop
      • Public Health funding could be cut off
    • PETE: This isn’t about the cashflow of the fiscal year, this is about our ability to pay our debt obligations. This affects hundreds of millions of people.

 

 

Keep it locked for even more!  Check it out in the full show!  — click PLAY below.

 

SIDE NOTE:

— Before you go, give your personal finances a facelift. Peep our personal guidance platform: Hey Money.

 

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