Reduced Social Security Benefits
Just like with a family budget, when the government is overextended with debt it has to cut back on some of its capital expenditures if it wants to pay that debt down. One of the biggest payouts from the U.S. government comes in the form of Social Security benefits.
For years, projections have indicated that the Social Security fund will be exhausted by 2035, meaning that payout reductions have always been a possibility. With a ballooning national debt, those payout reductions might become even more likely.
