30/05/2023
What is US debt ceiling?
The US debt ceiling is like a credit card limit for the government. It’s the maximum amount of money the government is allowed to borrow to pay for things it has already agreed to buy, like roads, schools, and hospitals. Just like how you can’t spend more than your credit card limit, the government can’t borrow more than its debt ceiling.
Sometimes, the government spends more money than it has, so it needs to borrow more. When this happens, Congress can vote to raise the debt ceiling so the government can borrow more money. It’s like asking your parents to increase your allowance so you can buy more toys. But if the debt ceiling isn’t raised, the government might not be able to pay for everything it promised, and that could cause big problems.
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