On Oct. 7, the U.S. Senate had reached a deal to temporarily raise the debt ceiling by $480 billion, giving the U.S. Department of the Treasury enough room to continue funding the government until about Dec. 3. The agreement was reached after Senate Republicans, led by Mitch McConnell, dropped a week’s long threat to filibuster any attempt by Senate Democrats to permanently raise the debt ceiling. 

The debt ceiling is a limit on the amount of debt the U.S. government can incur. A simple way to think about it would be to imagine the debt ceiling as the government’s credit limit and the national debt as their credit card bill. When congress raises the debt ceiling, it is raising the government’s maximum credit limit. 

Although raising the debt ceiling does nothing to fix the long-term debt crisis, putting Congress back at square one and forcing the Syracuse community, Syracuse University and the nation as a whole into a precarious waiting game. But if the debt ceiling isn’t raised by Dec. 3, either temporarily or permanently, the U.S. would default on its debt, similar to when someone fails to pay their credit card bill, except on a much larger scale. If the government defaults on its debts, it would have no money to meet its financial obligations, which would result in a wide ranging negative effects, such as a loss in federal funding, not just on the SU community, but on the nation as a whole. 

For Syracuse specifically, residents could expect to see a rise in interest rates, cuts to aid programs and economic strife among other potential consequences. Syracuse students could see their student loans affected. Given all of this, the debt ceiling fight demands the full attention of the Syracuse community.   

Secretary of the Treasury Janet Yellen warned in an op-ed for the Wall Street Journal that if the government were to default on its debt it, “would produce widespread economic catastrophe.” 

“In a matter of days, millions of Americans could be strapped for cash,” Yellen wrote. “Nearly 50 million seniors could stop receiving Social Security checks for a time. Troops could go unpaid.” 

A government default would hit Syracuse hard. Onondaga county is set to receive nearly $168 million in federal funding in the last fiscal year. This funding is set to be widely distributed around Syracuse. Projects such as Title IV-D child support, family assistance programs and the Lead Poison Control program are all set to receive federal funding within the next fiscal year. If the federal government were to default and fail to meet its financial obligations, there is no telling what could happen to the money. 

Similar uncertainties could happen to student loan money. If the government were to default on its debt, it would run out of money to meet their financial obligations, which could prevent SU students from receiving their designated loans. 

Defaulting could also irreparably harm SU students’ short and long term economic prospects. As young adults we are just starting to enter the market for jobs, houses, cars and many other essentials. A government default may cause another recession, just as the economy is starting to emerge from the recession caused by COVID-19. That level of economic damage could take years to reverse itself. 

The whole situation is disappointing to say the least, especially considering the importance of the debt ceiling. Instead of weaponizing the issue McConnell should be doing what’s best for the country by working towards an agreement with congressional democrats to raise the debt ceiling.

The Syracuse community and the nation as a whole cannot afford for the government to default on its debts — doing so would be disastrous. So please, call your senators and local congressional representatives and urge them to stop the political games and raise the debt ceiling. 

Evan Butow is a sophomore magazine, news and digital journalism major. His column appears biweekly. He can be reached at [email protected].

Published on November 11, 2021 at 12:38 am