A debt ceiling is a legal limit on the amount of debt that a government can borrow. The debt ceiling is set by law and must be raised periodically to allow the government to continue borrowing money to meet its obligations. In the United States, the debt ceiling is set by Congress and must be approved by a vote of both the House of Representatives and the Senate. The debt ceiling has been a source of political controversy in recent years, as some members of Congress have been reluctant to raise the debt ceiling, arguing that it would lead to increased government spending and debt
The debt ceiling is an important tool for managing the government’s finances. It helps to ensure that the government does not borrow more money than it can afford to repay. Raising the debt ceiling allows the government to continue borrowing money to meet its obligations, such as paying Social Security benefits and funding the military. Failing to raise the debt ceiling could lead to a government shutdown and a default on the government’s obligations, which would have a devastating impact on the economy.