Politicians, such as this one, say that by not increasing the debt ceiling. . .
“What will happen is that we’d have to stop making payments to our seniors — Medicare, Medicaid, Social Security. We’d have to stop paying veterans’ benefits. We’d have to stop paying all the other payments on all the other things the government does. And then we would risk default on our interest payments.
“If we did that, we’d tip the U.S. economy and the world economy back into recession, depression. I think it would make the last crisis look like a tame, modest crisis. It would be much more dramatic. The cost of borrowing would go up for everybody, and it would have a permanent devastating damage on our credit rating as a country.”
The Adminstration “have to start choosing which bills it would pay since it could not issue more debt.” Just as individuals, families, businesses, and other entities. Its time for prioritizing what to spend on. Note this is a technical question that the folks at the U.S. Treasury have to answer.