The Debt Ceiling and Why It Matters

The Debt Ceiling and Why It Matters

What is the debt ceiling? The debt ceiling dates back to 1917. It caps the level of debt that the federal government can assume. Once the U.S. hits the limit and exhausts ways to pay its bills, Congress must lift the ceiling in order for the government to continue to borrow to meet its obligations. If it doesn’t, the country could be forced to default, which experts...