The current debate in Congress surrounding averting a government shutdown includes discussions about increasing or eliminating the debt ceiling, a normally Republican-backed tactic to control government spending. The debt ceiling is a limit set for the U.S. Treasury, beyond which the government cannot borrow more money to pay bills, potentially leading to default. The debt ceiling was introduced in 1917 to manage borrowing needs during World War I, and has since been raised numerous times. Today, the U.S. has a high debt-to-GDP ratio and ongoing political gridlock over government spending. Arguments for eliminating the debt ceiling have gained bipartisan support, with President-elect Trump and some Democrats calling for its removal. Trump’s plan to cut taxes and projected decrease in federal revenue may make continued borrowing necessary. Despite some Democratic support for eliminating the debt ceiling, there are still opposing views within the party, with leaders like Hakeem Jeffries opposing the idea. The current debate highlights a shift in Republican views on the debt ceiling and the need to address government spending in a more bipartisan and fiscally responsible manner.
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Understanding the debt ceiling: Trump’s controversial push to abolish it.
