SIOUX FALLS, S.D. (KELO) –Because it’s never happened in modern history, failure by Congress to raise the debt limit brings a lot of uncertainty.

“Is it going to affect Social Security, Medicare, veterans benefits, air traffic control, Department of Agriculture, health and safety inspections, tax refunds, that uncertainty really spooks the market,” said USD’s Professor Michael Card.

Card says the debt ceiling is raised to pay for things we’ve already spent the money on.

The debt limit does not authorize new spending. It simply allows the government to finance existing legal obligations that Congresses and presidents of both parties have made in the past.

“So we are sort of in this game of chicken where somebody’s got to blink, and most likely it will be unpalatable bale to somebody and I think your question was very appropriate, how does this affect South Dakota, I think it mostly in the agriculture industry where we see it. It may also appear that it ends up raising some taxes.”

Congressman Dusty Johnson says compromise is a key to avoiding default.
“I know we are in a world where an increasing number of Americans view the other party as the enemy, you cannot govern this country mathematically it is impossible to get anything passed into law unless we are willing to find some common ground,” said Johnson.

The latest from CBS News shows work requirements for federal aid programs have emerged as a sticking point, however, President Joe Biden has signaled openness to a possible compromise.