Raising the Debt Ceiling Explained

Just like our household budgets, the government must decide if they are going to change their spending habits or continue/increase spending in the coming months. The rising costs of services and labor hit the Federal Government just like they do to consumers, and in order to spend more money, congress must first authorize the increase in debt required to continue spending at the same rate or higher – this is in essence the argument surrounding raising the debt ceiling.

Of course, there are numerous economical, strategical, environmental, and political nuances that play a part of the spending/borrowing arguments and philosophies, but this short video explains the concept in a simplified way.

Enjoy!

Disclaimer: For information purposes only and should not be interpreted as legal, tax or financial advice. Always consult your CPA/tax advisor/attorney (or reach out to us;) to discuss your specific situation. Past performance is no guarantee of future results.