United States debt-ceiling crisis of 2021
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The 2021 United States debt-ceiling crisis centers on the raising of the federal government debt ceiling, and is part of an ongoing political debate in the United States Congress about federal government spending and the national debt. The United States Congress previously voted to suspend the debt limit until July 2021. Once the suspension expired, it caused the crisis to begin in September 2021.[1] The debt limit was normally raised without much debate, but it has led to political and financial turmoil since the debt-ceiling crises of 2011 and 2013. The politicization of the debt-ceiling by Republicans has been criticized as a type of constitutional hardball hostage-taking technique designed to threaten extreme and severe consequences in order to make their rivals accept their demands.[2][3][4]
The consequences of not raising the debt-ceiling is a U.S. debt default.[5] The Department of the Treasury is already using "extraordinary measures" to pay U.S. obligations; said measures are expected to expire around October 18th,[6] with a margin of error ranging from October 15th to November 4.[7] If the government defaults, social security checks could not go out, military personnel and other government employees could not be paid, and veteran benefits would lapse.[8] Other anticipated damage could potentially include an economic recession, a decrease in GDP, and 6 million jobs lost, and $15 trillion in household wealth being eliminated.[9]
Republicans have stated that they refuse to provide the votes necessary to raise the debt ceiling. Republican Senate Minority Leader Mitch McConnell stated, "Of course the debt ceiling has to be raised," but also stated "There is no chance... the Republican conference will go out of our way to help Democrats conserve their time and energy."[10]
References[edit]
- ↑ Dickler, Jessica (2021-09-20). "What the federal debt ceiling showdown could mean for you". CNBC. Retrieved 2021-09-22.
- ↑ Review, Columbia Law. "ASYMMETRIC CONSTITUTIONAL HARDBALL". Columbia Law Review. Retrieved 2021-09-30.
- ↑ Matthews, Dylan (2021-02-10). "Abolish the debt ceiling". Vox. Retrieved 2021-09-30.
- ↑ Longman, Martin; Valelly, Rick (2018-04-09). "Trump Meets Political Science". Washington Monthly. April/May/June 2018. ISSN 0043-0633. Retrieved 2021-09-30.
- ↑ Business, Matt Egan, CNN. "US government will run out of money by October 18, Treasury secretary says". CNN. Retrieved 2021-09-29.
- ↑ "Treasury to likely exhaust 'extraordinary measures' in weeks -Yellen". news.yahoo.com. Retrieved 2021-09-29.
- ↑ "BPC Updates Debt Limit "X Date" Projection: Likely to Arrive Between October 15 and November 4 | Bipartisan Policy Center". bipartisanpolicy.org. Retrieved 2021-10-06.
- ↑ "What happens if Congress doesn't raise the debt ceiling? What you need to know about the showdown between Democrats and Republicans". www.cbsnews.com. Retrieved 2021-09-29.
- ↑ Zandi, Mark; Yaros, Bernard (September 21, 2021). "Playing a Dangerous Game With the Debt Limit" (PDF). Moody's Analytics: 5.
- ↑ "McConnell stops Schumer's latest attempt to raise debt ceiling". www.cbsnews.com. Retrieved 2021-09-29.
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