Hey, high schoolers! Are you confused about the debt ceiling? Don’t worry, we’ll break it down for you.
The federal government has a limit on how much money it can borrow to pay for its expenses. This limit is known as the debt ceiling. Currently, the U.S. is close to hitting this limit, and Congress needs to raise it to avoid defaulting on its debts.
President Biden and Democrats are calling for a clean debt ceiling increase, meaning only the limit is raised, and no spending cuts are included. However, Republicans want spending cuts as part of any deal to raise the debt ceiling.
So, what’s the problem? Well, if Congress doesn’t raise the debt ceiling, the U.S. could default on its debts, which could have disastrous effects on the economy. On the other hand, adding spending cuts to the debt ceiling increase could harm programs that many Americans rely on.
It’s a tough dilemma, but both sides need to come to a compromise to avoid a crisis. As high schoolers, it’s essential to understand the basics of the debt ceiling and how it affects the country’s economy. Let’s hope our leaders can find a solution that works for everyone.