South Carolinians Would Feel Debt Default - WSPA.com

South Carolinians Would Feel Debt Default

Posted: Updated:
South Carolinians Would Feel Debt Default South Carolinians Would Feel Debt Default

 

Most in South Carolina haven't felt impacts of the government shutdown but a local economist says everyone will feel a debt default.

"It would cause people worldwide to feel the difference in how their economy is doing because the dollar and dollar debt is fundamental to the operation of the world economy," says Dean Emeritus, Bruce Yandle with Clemson's College of Business and Behavioral Science.

Yandle explains a government default is similar to a family no longer able to pay their house payments and having to give their keys back to the bank.

"A default is serious business," Yandle says.

According to Yandle, a default can mean high volatility in interest rates and security prices, possible shutdown of mortgage lending, and if it continues for a week or more, dramatic cuts in federal operating budgets, with associated layoffs and reductions in government programs. This can affect everything from student loans to food inspection.

Yandle also says combined with a government shutdown it could send the economy back into a recession. However, he believes a default won't happen and if it does, it will be brief.

Related Stories:

Spartanburg Woman Asks For Prayers To End Government Shutdown

SC Extends WIC Funding Through End of October

  • Top StoriesTop StoriesMore>>

  • Crosswell Elementary School To Dismiss Early Due To Power Outage

    Crosswell Elementary School To Dismiss Early Due To Power Outage

    Tuesday, September 2 2014 9:56 AM EDT2014-09-02 13:56:05 GMT
    Crosswell Elementary School in Pickens County will be dismissing early due to power outage.Crosswell Elementary School in Pickens County will be dismissing early due to power outage.
    Crosswell Elementary School in Pickens County is dismissing early due to a power outage. Pickens County School District spokesman John Eby stated that the school will dismiss students at 9:30 Tuesday morning and normal dismissal procedures will be followed.
    Crosswell Elementary School in Pickens County is dismissing early due to a power outage. Pickens County School District spokesman John Eby stated that the school will dismiss students at 9:30 Tuesday morning and normal dismissal procedures will be followed.
  • SWAT Called To Home After Man Locks Himself Inside With A Gun

    SWAT Called To Home After Man Locks Himself Inside With A Gun

    Tuesday, September 2 2014 2:04 AM EDT2014-09-02 06:04:32 GMT
    Greenville County Sheriff's Office SWAT responded to a domestic disturbance call on Stallings Road Monday night. 
    Greenville County Sheriff's Office SWAT responded to a domestic disturbance call on Stallings Road Monday night. 
  • Laboring On Labor Day: Tradition and Economic Opportunity

    Laboring On Labor Day: Tradition and Economic Opportunity

    Monday, September 1 2014 9:15 PM EDT2014-09-02 01:15:21 GMT
    For some, Labor Day is a farewell to white pants and shoes. For others, it means an extra day of vacation. There are also those who take the day quite literally and cash in on the holiday.For some, Labor Day is a farewell to white pants and shoes. For others, it means an extra day of vacation. There are also those who take the day quite literally and cash in on the holiday.
    For some, Labor Day is a farewell to white pants and shoes. For others, it means an extra day of vacation. There are also those who take the day quite literally and cash in on the holiday.
    For some, Labor Day is a farewell to white pants and shoes. For others, it means an extra day of vacation. There are also those who take the day quite literally and cash in on the holiday.
Powered by WorldNow

250 International Dr.
Spartanburg, S.C. 29303

Telephone: 864.576.7777
Fax: 864.587.5430
Email: webmaster@wspa.com

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.