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2023 United States debt-ceiling crisis: Difference between revisions
2023 United States debt-ceiling crisis (view source)
Revision as of 17:59, 25 May 2023
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== 2011 Debt Ceiling Episode == | == 2011 Debt Ceiling Episode == | ||
Congress resolved the debt ceiling crisis by passing the Budget Control Act of 2011, which became law on August 2, 2011.4 This act allowed the debt ceiling to be raised by $2.4 trillion in two phases, or installments. In return, the act included $900 billion in slowdowns in planned spending increases over a 10-year period. It also established a special committee charged with finding at least $1.5 trillion in additional savings.<ref>https://www.investopedia.com/terms/1/2011-debt-ceiling-crisis.asp</ref> | |||
* In the first phase, a $400 billion increase would occur immediately, followed by another $500 billion unless Congress disapproved it. | |||
* The second phase allowed for an increase between $1.2 trillion and $1.5 trillion, subject to Congressional disapproval as well. | |||
=== US Rating Downgrade === | === US Rating Downgrade === | ||