The Daily The Debt Ceiling Showdown, Explained
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Jan 23, 2023 
Jim Tankersley, a White House correspondent for The New York Times, dives deep into the rapid escalation of the U.S. national debt, now over $31 trillion. He unpacks the political tensions surrounding the debt ceiling, detailing the historical showdowns and the evolving strategies of Republicans and Democrats. From fiscal policies under various presidents to the implications of potential defaults, Tankersley presents a fascinating look at how budget decisions shaped today’s economic landscape, highlighting the urgent need for fiscal reform amidst political gridlock.
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Debt Ceiling Politics
- The debt ceiling is a limit on how much the U.S. government can borrow.
- In recent years, raising the debt ceiling has become a political weapon, particularly for Republicans.
Debt Ceiling Risks
- Failing to raise the debt ceiling risks economic catastrophe, including defaulting on U.S. debt.
- The Treasury can use "extraordinary measures" to temporarily avoid default, but these are short-term solutions.
Bush's Impact on Debt
- The U.S. national debt grew significantly under President Bush due to military spending, tax cuts, and the 2008 financial crisis.
- Unlike previous presidents, Bush chose to borrow money for wars rather than fund them through war bonds or tax increases.