Debt Ceiling and the Government Shutdown

For the first time in 17 years, Congress failed Monday night to agree on a new budget and refused to extend the current one (Shear, 2013). This is partially because of the debt ceiling, which is a maximum amount set by Congress that the government is allowed to borrow in order to pay its debts. “If Congress fails within a certain time frame to raise the debt ceiling, funds would not be available to pay bills and the U.S. government would technically be in default. According to the Treasury Department, failure to raise the debt ceiling—which has never happened—would “threaten the jobs and savings of everyday Americans” (CNBC.com, 2013). As a result of no decision being made, the government shutdown, which affects very many Americans. Many Americans are worried that they will not be paid. Also as a result, many national parks were closed. The current economy has been struggling for a while, with many people unemployed and low wages given to those who are employed.

CNBC.com. (2013, september 19). Debt ceiling: Cnbc explains. CNBC. Retrieved from http://www.cnbc.com/id/101047518

Shear, M. D. (2013, October 1). U.s. government shuts down in budget impasse. New York Times. Retrieved from http://www.nytimes.com/2013/10/02/us/politics/us-government-shutdown.html?_r=0

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