Relief Checks Live Updates: Debt Ceiling, Social Security Payments, Davos World Economic Forum

Debt ceiling: what is it?

Throughout this week, we’ll be discussing aspects related to the US debt ceiling, so in case you’re not familiar with the term, here’s a quick summary.

The debt ceiling is a legislative limit on the amount of national debt the United States government is allowed to borrow. It is, in fact, intended to ensure that the government does not spend more than it can afford, but it has been a source of political controversy in recent years as lawmakers debate whether or not to increase the limit.

The debt ceiling does not limit the amount of money the government can spend, but rather the amount it can borrow to finance those expenditures. The United States Congress has the power to raise or lower the debt ceilingand it has been raised several times in the past.

You could say it’s like a credit card limit for the government. Just as you have a limit on the amount of money you can borrow from your credit card, the government also has a limit on the amount of money it can borrow. Sometimes they increase it because the government needs to borrow more money to pay for things like schools, roads, and the military. It’s caused problems in the past when Congress disagrees — yes, it happens often — on whether to raise it or not.

Since the modern debt ceiling was first established in 1917, Congress has raised the limit more than 100 times. The frequency of increases has varied over time, with some periods seeing multiple increases in a single year and others spanning several years without any change.

A government shutdown or debt defaults are what we all want to avoid.

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