Social Security payments could disappear for 500,000 San Diego residents
SAN DIEGO (KGTV) – More than 500,000 San Diego residents on Social Security would see their payments stop if the federal government fails to lift the debt ceiling by October 18.
US Treasury Secretary Janet Yellen told a congressional committee this week that the loss of Social Security would be one of the multiple “disastrous” consequences of the US’s first debt default.
“It would be disastrous for the US economy, for global financial markets and for millions of families and workers whose financial security would be compromised by late payments,” she said.
According to the New York Times, Yellen added that the soldiers would not know when they would be paid and that interest rates could rise for credit cards, new car loans and mortgage payments.
In San Diego County, an estimated 517,000 people were receiving some form of Social Security checks in 2019, according to the latest federal data available.
Don Hotz, who lives in University City and has been retired for nine years, said the $ 2,100 he receives per month makes a difference.
“It’s not 80 or 90 percent of my monthly income, but it’s pretty significant, and I know a lot of people live from paycheck to paycheck, and now it’s a paycheck to. social security for a social security paycheck, ”he said Wednesday.
The United States has never defaulted on its debt and likely will not, given the political ramifications of halting Social Security payments, said Lynn Reaser, chief economist at Point Loma Nazarene University .
“But while we’re going through this angst, it’s not going to make the stock market very calm and it’s going to make a lot of people nervous,” she said.
Reaser added that Social Security tax payments alone are not enough to make the necessary payments, so the United States must borrow to meet its obligation.
Meanwhile, Congress must pass a continuing resolution to avoid a government shutdown on Thursday. While a shutdown would have no impact on Social Security payments, Reaser would hit San Diego, given the heavy military presence, federal workers, and research funding entering the region.