What is the national debt ceiling? We keep hearing about it, but what is it? And what does it mean for you?
"The U.S. debt ceiling is really a cap of how much that Congress can spend, and run up massive deficits like they've been doing" said Vance Ginn of the Texas Public Policy Foundation, "It puts a limitation on that overall so it won't grow out of control."
Unfortunately, since Joe Biden took office the Democrats spending has been out of control, with more on the way as they prepare to ram through their $3.5 trillion dollar so-called 'infrastructure' bill, which is basically 'the green new deal' and the Democrats wish list.
"Many Republicans are saying, look we've spending too much, it's time to right this ship that's heading off a cliff, whereas the Democrats are saying you know what? we need to keep spending" Ginn told KTRH, "Ultimately it wall on the President, but we can't continue down this rout."
Basically, think of the debt ceiling as a limit on your credit card.
On Tuesday, the House passed a bill that would temporarily suspend the debt ceiling to avoid a government shutdown. The Democrats want to suspend the debt ceiling limit until -after- next years midterms. Why? So they can pass and spend as much as possible before losing their majority.
Republicans have vowed to block the bill in the Senate, setting up a showdown, for a possible shutdown.
"Now there is this concern that as the debt ceiling runs out at the end of the month, that the U.S. won't be able to pay it's bills" Ginn said, "So, that can create a debt crisis. We need to do something to get this debt back in the right direction."
Easier said the done. A government shutdown would lead to all kinds of problems, including panic on Wall Street, loss of jobs, and another halt to your 401k.
The deadline is next week.