Planet Money Jay & Shai's debt ceiling adventure (Update)
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Jun 19, 2025 
Shai Akabas, a Vice President at the Bipartisan Policy Center, dives into the complexities of the U.S. debt ceiling. He discusses how Congress's decisions impact the nation’s ability to manage debt, the looming 'X-Date' that could spell disaster for the economy, and historical crises that have shaped the current landscape. Akabas shares insights on how transparency is vital amidst political chaos and misinformation, and emphasizes the urgency of raising the debt limit to secure fiscal stability. It's a thought-provoking look at our financial future!
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The Origin of the X Date
- Jay Powell and Shai Akabas used meticulous data collection and analysis to pinpoint the debt ceiling 'X date' in 2011.
- They created a detailed model with daily government spending patterns to understand when the U.S. would run out of money.
Politics Deepened Debt Crisis
- The 2011 debt ceiling crisis was intensified by political distrust and partisan brinkmanship.
- Both sides doubted Treasury's estimates, so independent, trusted analysis was essential for negotiation.
Urgency in Debt Ceiling Talks
- Avoid waiting until the last minute to negotiate the debt ceiling; proactive engagement is vital.
- Educate lawmakers on consequences to prevent brinkmanship and economic instability.