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University of North Florida professor: Default would 'cause havoc' on the economy

6:42 PM, Oct 14, 2013   |    comments
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JACKSONVILLE, Fla. -- With the default deadline fast approaching, many are keeping a close eye on Washington. That includes Dr. Matthew Corrigan. He's a political science professor at UNF.

"It's never really gotten this far and this severe," he said.

If there's no deal reached by Thursday, the government will need to start prioritizing it's spending. That means people that rely on government benefits, like military and those on Social Security, may have to go without.

"I'm not sure it's an emergency situation Thursday morning if nothing happens, but if it continues to go on, then all sorts of problems will come up," said Corrigan.

Corrigan said the problems could hit home toward the end of October, or start of November. He told First Coast News the stock market could react negatively, and interest rates could go up. That means people buying a home or even those with a credit card could see an impact.

"You just have a lot of unpredictable consequences that are possible," he said.

Corrigan went on to say as rough as things could get for millions of Americans, it is preventable.

"This is really not necessary," he said. "At some point they need to agree, so why don't they agree before we stop being able to pay our obligations," he said.

First Coast News