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Politics : Actual left/right wing discussion
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To: Lane3 who wrote (10022)8/5/2011 12:35:03 PM
From: TimF  Read Replies (1) of 10087
 
Since it isn't an entitlement, there is no case to be made that the failure to pay them would be considered a default.

I agree there is pretty much no case (although I can imagine someone trying). I think the same holds for entitlements. Both are spending under congressionally passed laws.

I wasn't saying not spending that money would be a default, I was talking about what would happen with federal payments that didn't go out because of the political fight (in an alternate reality where it wasn't temporarily resolved, or in some future case where it comes up again), using an example of a category of payment that almost certainly would be stopped. Social Security is a poor example because it would probably get paid (at worst some payments might be slightly late as they come do slightly before the revenue is high enough, and so they have to wait a week or two, but it probably wouldn't even get to that for Social Security payments, which would probably have the highest priority after debt payments and the most inflexible contractual obligations).

And consideration for paying them retroactively to make up for the period of unavailable funding would likely be very different.

Whether or not making back payments was considered to be legally required I think the political pressure to pay them would be high. But your probably right that I expressed too strong of certainty about them.
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