So, when the debt limit is reached, the whole thing doesn't shut down immediately. I would imagine that the Treasury will have to do what individuals do when they reach their credit card limit. The Treasury will have to rob Peter to pay Paul for a while.
I'm not sure who's job that is going to be....picking what gets paid first and what get's delayed, but, I'd like to see the Obama administration publish a priority list. Social Security recipients and Medicare benifits should be the first things paid. These dollars circulate quickly through the economy. Social Security dollars go directly into the economy as they are consumed by the seniors and medicare dollars go to doctors and nurses and hospital workers and nursing home workers...then into the economy. Of course, the soldiers in the military will get paid immediately, as well. Same for any dollars that go directly into the economy to circulate through the purchase of goods and services.
So what can wait? Well, first, I'd start with oil subsidies. They have had record profits. They can wait a bit. Tax breaks for companies who reduced US employees while increasing employment over seas in the same period of time? They can wait a bit. We've been loaning money virtually interest free to the banks. Maybe they can go back to normal rates for a while. The items in this paragraph will have to be used for the items in the first paragraph.
I think we have to keep up with our interest payments to foreign investors. We don't want them to forclose on us. But, as a parent who delays buying new clothes or eating out or taking a vacation during lean times in order to pay for their kids' education or doctor bills, maybe some of our corporations can sacrifice a bit. After all, when our economy heals and full employment trickles up, they'll be able to earn that dollar tomorrow instead of today. Maybe they'll even earn 2 dollars tomorrow if they have some patience and show some restraint.
So, when the debt limit is reached, if we have such a list, the ones that will be screaming will be the constituency of the ones that drew the line in the sand.