Brookings experts share explainers, analysis, and commentary about the debt ceiling and what's at stake in today's fight.
On Tuesday, President Biden met with House Speaker Kevin McCarthy and congressional leaders to discuss the issue that's dominating U.S. politics—the debt ceiling. Below, we've compiled a selection of Brookings explainers, analysis, and commentary related to the debt ceiling. While much remains up in the air, we hope this work will help answer some key questions as negotiations continue. |
What is the federal debt ceiling? The recurring need to lift America's debt ceiling is always a political hot potato. In this explainer, the Hutchins Center breaks down what the debt limit is, why we have one, what happens when the U.S. Treasury hits the debt ceiling, and more. How worried should we be if the ceiling isn't lifted? "If the debt ceiling binds, and the U.S. Treasury does not have the ability to pay its obligations, the negative economic effects would quickly mount and risk triggering a deep recession," Wendy Edelberg and Louise Sheiner warn. What do people think about debt ceiling issues? Most Americans believe that the federal government spends too much and has accumulated too much debt, but they are not sure what to do about these problems. William Galston discusses this and other findings from public opinion polling. How is a government shutdown different from a failure to raise the debt ceiling? Some have suggested that a debt ceiling showdown that leaves the U.S. Treasury without enough cash to pay all its bills would resemble a government shutdown. David Wessel explains the difference between these events. Is the House discharge rule a viable option? As a backup plan for failed negotiations, House Democrats are now collecting signatures for a discharge petition to raise the debt ceiling. While nothing can be ruled out, the discharge rule is unlikely to resolve the current impasse, Sarah Binder says. Should the debt ceiling be abolished? In an opinion piece for Newsweek, Louise Sheiner argues that political bickering over the debt ceiling is a waste of time and energy. Instead, leaders should focus their attention on the nation's long-term economic challenges. For more research and commentary, see the U.S. economy page on our website. |
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