3 things to know about the debt-ceiling farce [View all]

[Yo_Mama_Been_Loggin]

The most tiresome issue in American politics is back, thanks to Republicans who regained control of the House of Representatives in the 2022 midterm elections.

For the next six months or so, you’ll be hearing about the debt-ceiling standoff that could torpedo the U.S. economy. This isn’t some natural phenomenon or market abnormality we have no choice but to deal with. It’s a manmade construct that once served a purpose but has now become a mechanism for abuse of the majority by a radical minority.

Since 1917, Congress has set a limit on the amount of money the federal government is allowed to borrow. Federal spending and the borrowing that finances some of it normally rise over time, so Congress has to increase the borrowing limit every couple of years. This used to happen routinely, without fanfare. But during the last 25 years, Republicans have grown increasingly militant and used their votes on a debt-ceiling extension as leverage for other political demands.

That’s what they plan to do, again, in 2023. The Treasury Dept. says it will hit the borrowing limit of $31.4 trillion on January 19. If Congress simply voted to extend the borrowing limit, nothing notable would happen. But Republicans who now control the House say they’ll only raise the borrowing limit if Democrats agree to major spending cuts, which Democrats won’t. So the standoff is on.

-more-

https://finance.yahoo.com/news/3-things-to-know-about-the-debt-ceiling-farce-203126129.html