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2023 United States debt-ceiling crisis: Difference between revisions
2023 United States debt-ceiling crisis (view source)
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== What is it? == | == What is it? == | ||
The | The debt ceiling is the legal limit on the total amount of federal debt the government can accrue. The limit applies to almost all federal debt, including the roughly $24.6 trillion of debt held by the public and the roughly $6.8 trillion the government owes itself. | ||
The debt ceiling was first enacted in 1917 through the Second Liberty Bond Act and was set at $11.5 billion to simplify the process and enhance borrowing flexibility. In 1939, Congress created the first aggregate debt limit covering nearly all government debt and set it at $45 billion, about 10 percent above total debt at the time.Since the end of World War II, Congress and the President have modified the debt ceiling more than 100 times, according to the Congressional | The federal debt ceiling was last raised in December of 2021 by $2.5 trillion to $31.381 trillion, which lasted until January 19, 2023.<ref>https://www.crfb.org/papers/qa-everything-you-should-know-about-debt-ceiling</ref> | ||
The debt ceiling was first enacted in 1917 through the Second Liberty Bond Act and was set at $11.5 billion to simplify the process and enhance borrowing flexibility. In 1939, Congress created the first aggregate debt limit covering nearly all government debt and set it at $45 billion, about 10 percent above total debt at the time. Since the end of World War II, Congress and the President have modified the debt ceiling more than 100 times, according to the Congressional | |||
Research Service. | Research Service. | ||