Washington, DC CNN —The United States could default on its debt in less than two weeks, and cities with a large military presence risk an economic firestorm if lawmakers don’t act.
About a sixth of government spending goes toward national defense, a quarter of which is to pay military personnel, according to the Congressional Budget Office.
If the United States can’t pay its national defense bills, cities with large military bases face a potentially massive fallout, encompassing missed payments, rising debt and a significant pullback in spending that would cut into local businesses’ bottom lines.
That could further damage local economies grappling with financial market turbulence that could unfold even ahead of a possible default.
Federal workers could get stuck pulling from their savings accounts or relying on credit to make everyday purchases, Mayo said.