Essay On Debt Ceiling

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Recommended: Introduction to national debt

I read in articles from The New York Times, The New York Post and The Washington Post about a deal made on September 6th between President Trump, Senator Chuck Schumer and Minority Leader of the House Nancy Pelosi to extend the debt ceiling for three months until December 15th. This was to--among other things--provide more disaster relief funds for the areas affected by Hurricane Harvey. Trump has also proposed the idea of getting rid of the debt ceiling altogether, although what the replacement of the debt ceiling to keep money borrowing in check could be isn’t clear. Trump’s decision to choose the Democratic three-month plan over the Republican 18-month plan has surprised many, including Speaker of the House Paul Ryan, who called the plan “ridiculous” and “unworkable,” as the debt ceiling is normally extended for periods much longer than three months. Other recent complications of the debt ceiling include the 2011 Debt Ceiling crisis when the debt ceiling was raised by $400 billion to prevent defaulting. …show more content…

Before 1917, Congress was constitutionally required to approve any money borrowing. Since 1960, the debt ceiling has been raised, extended or had its definition revised a total of 78 times. The current national debt is estimated to be $20.4 trillion, or to put it in perspective, the earnings of an average worker over 450 million years. If the U.S. ever hits the debt ceiling, it would have to default--in other words, pay back-- its debt. According to The Balance, this would cause interest rates to increase, the value of the U.S. dollar would drop, and the U.S. would be unable to pay Social Security, Medicaid, student loans, and tax

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