How the Debt Ceiling Matters to You
(Memphis) If Congress had not reached a deal by midnight, you could have been impacted in more ways than you think.
Dr. Jeff Wallace says people who get government assistance like social security, Medicaid, Medicare, and food stamps will notice a change first.
The checks could be delayed or cut.
“Uncertainty slows people down. They’re going to sit on their hands until things become more certain. They may postpone major purchases until they are sure things are going to be ok,” said Wallace.
If you work for a company who contracts with the government, they may not be paid, which could impact your paycheck.
Another area that would take a hit is interest rates.
Rising interest rates could impact people’s ability to buy a home or car.
“When interest rates go up I can see car sales going down,” said Shelly Alexander who owns Frankie’s car lot.
For small business owners like Alexander higher interest rates would be a double whammy because not as many people would buy cars and she still has to pay her business loans which would also go up because of the higher interest rates.
“When the economy is like it is and the state of the world is like it is people don’t want to make changes. They don’t want to spend money. So it affects us all,” said Alexander.
Wallace says shutting the government down further is not good for either party, and he thinks they will reach a deal by the midnight deadline.