The NPR Politics Podcast The US Is Flirting With Financial Calamity: What You Need To Know
May 9, 2023
The podcast dives into the U.S. financial crisis, exploring how the government borrows more than it collects. It discusses the implications of not raising the debt ceiling and the looming threat of default. The conversation highlights historical political battles and the urgent need for resolution. Plus, there's a look at the dual nature of national debt—how it can be a burden yet is also vital for the global financial system. The hosts analyze the potential fallout on jobs and economic stability if the situation isn't addressed.
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Debt Ceiling Basics
- The US debt ceiling is a legal limit on how much money the government can borrow.
- Reaching it without raising it can increase borrowing costs for households and businesses.
2011 Debt Ceiling Crisis
- In 2011, a similar debt ceiling debate occurred between the Obama administration and a Republican House.
- This resulted in market turmoil and a credit downgrade.
History of US Debt
- The US has consistently held debt since the Revolutionary War.
- The debt ceiling became prominent around World War I due to increased government spending needs.