Debt ceiling. what is the talk about:
This week we’ll be discussing aspects of the US debt ceiling, so if you’re not confused by the timing, here’s a little recap.
The debt ceiling is A legislative limit on the amount of national debt that the United States government is authorized to borrow. It’s essentially designed to ensure the government doesn’t spend more than it can afford, but it’s been a source of political controversy in recent years as lawmakers debate whether to raise the cap.
The debt ceiling does not limit the amount the government can spend, but the amount it can borrow to finance that spending. The United States Congress has the power to raise or lower the debt ceilingand it has been raised many times before.
You could say it’s like a credit card limit for the government. Just like you have a limit on how much money you can take from your credit card, the government also has a limit on how much money it can take. Sometimes they raise it because the government needs to borrow more money to pay for things like schools, roads, and the military. It’s caused some problems in the past when Congress disagrees, yes, it happens quite a bit, on whether or not to raise it.
Since the modern debt ceiling was first established in 1917. Congress has raised the limit more than 100 times. The frequency of increases varied over time, with some periods showing multiple increases within a year and others with no change for several years.
A government shutdown or debt default is something we all want to avoid.