Raising the debt ceiling refers to increasing the legal limit on the amount of debt that a government can borrow. It’s often done to avoid a government shutdown or default on financial obligations.
Raising the debt ceiling is crucial because it allows the government to continue functioning and meeting its financial commitments, such as paying salaries, benefits, and interest on its debt. Historically, raising the debt ceiling has been a contentious issue, with debates surrounding its potential impact on inflation, interest rates, and the overall economy.