The Questions Everyone in the USA is Asking About Debt (What it is and What is the Debt Ceiling)

(By InfoNegocios Miami Staff) The debt ceiling is the maximum limit established by the United States Congress that allows the federal government to borrow money to finance obligations already approved by lawmakers and presidents. This occurs when the government records budget deficits and the collected revenues are not sufficient to cover the expenses. Increasing the debt ceiling does not authorize new spending commitments, but rather allows the government to meet existing financial obligations.

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The debt ceiling, currently set at $31.4 trillion, was established over a century ago and has been modified over 100 times since World War II. Although initially created to facilitate federal government borrowing, it has become a political issue in recent decades, used by Congress as a way to restrict debt growth.

It is important to note that the fear of a debt default has led lawmakers to pass laws to raise or suspend the debt ceiling on several occasions. The last time it was approved was in December 2021.