Why does the United States federal government have a debt ceiling?

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The Politicus
Oct 07, 2021 08:00 AM 0 Answers
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In the United States, the debt ceiling limits how much money the federal government can borrow. This ceiling was apparently introduced in 1939.

Why does the debt ceiling exist? Congress approves the federal budget anyway, and at that point, congress is already approving how much the debt is expected to increase. Then what's the point of having a debt ceiling, that apparently needs to be passed separately from the budget (and so far, always has been raised whenever needed)? Why isn't the difference in budgeted income and expense considered an implicit authorisation to borrow the difference?

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  • October 7, 2021