Ones and Tooze Dancing on the Debt Ceiling?
Sep 17, 2021
Dive into the staggering U.S. debt ceiling at $28.5 trillion and the impending political showdown surrounding it. Discover how nearly 90% of workers faced furloughs during the pandemic and its lasting impacts on the workforce. The discussion sheds light on crucial economic lessons learned from past crises, emphasizing the need for preparedness and thoughtful policymaking. Unpack the transformation of budgetary processes into a political weapon and the potential consequences of government defaults on global stability.
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How US Debt Works
- The US government no longer designates specific purposes for new debt.
- Since World War I, they authorize an overall borrowing cap.
Debt Ceiling Origins
- The debt ceiling originated in 1917 to simplify wartime borrowing.
- It allowed the government to borrow freely up to a limit, streamlining complex deals.
Default Catastrophe
- Defaulting on any US debt destabilizes the entire system.
- This could shake global finances, as a large amount of US debt circulates globally.
