What happens if it is not raised?
- Our National Credit Rating is downgraded.
- Costs Nation more to borrow money.
- Sends tax revenue to pay interest, not government programs. Bad for the economy, bad for taxpayers.
- Harm world economy if US does not keep Triple – A rating.
- Payments not made because the Country is out of money.
- Social Security recipients, Military personnel and federal workers won’t be paid.
- The Stock Market – US investments – could sink
When did the Debt Ceiling begin?
- “The statutory limit on federal debt began with the Second Liberty Bond Act of 1917.”1 This allowed the financing of WWI. Later, the debt ceiling was raised for the financing of WWII.
How many times has the debt ceiling been raised?
- I couldn’t find how many times it has been raised since enacted, but I did find that it was raised 38 times in the last 30 years.
I found the most interesting paper at the Treasury.gov while I was researching this article. I think it explains the debt ceiling and the truth much better than I could.