Working Capital

Get the facts on the debt ceiling. The debt ceiling is *** cap on how much the country can borrow to pay for what’s already been spent. This is like paying off your credit card with money you’re borrowing from someone else. It’s not *** green light to spend more. Over the years, both parties have contributed to the rising debt with massive. packages and tax cuts. The US spends more than it brings in, so most of that is paid for by borrowing money. If the amount the government owes hits the ceiling, we default, which is why Congress is constantly lifting or waiving the limit. Defaulting on the debt has some real life consequences as well. The Treasury has to start pinching pennies. That means people relying on Social Security or veterans benefits don’t get the money they’re owed. Even some of your interest payments could go up on things like car loans or mortgages. While most major countries borrow to pay for programs, the United States is only one of *** few to have this type of limit. Some economists say we could get rid of it altogether or at least change the rules so it’s *** financial decision, not *** political one, helping you get the facts. I’m Kayla Norwood.