"Answering questions about the debt-ceiling talks and what could happen if both sides fail to reach an agreement:
What is the federal debt ceiling?
In 1917, as the U.S. entered World War I, Congress authorized the Treasury to issue long-term bonds to finance the war, but placed a limit on the amount of debt that the government could issue. That limit, known as the debt ceiling, has been raised repeatedly -- and lowered a few times -- since then. Congress often balks at raising the limit, and the confrontations are always worse when control of the government is divided between the two parties. The limit currently stands at $14.3 trillion dollars -- a ceiling that the government reached in May.
How much has the debt grown in recent years?
Economists usually measure the debt as a percentage of the overall size of the economy (the gross domestic product). The debt peaked at more than 120% of GDP at the end of World War II, then declined steadily and hit a low point of slightly more than one-third of GDP at the end of the Jimmy Carteradministration. The debt then grew rapidly during the Ronald Reagan and George H.W. Bush administrations, peaked during Bill Clinton's first term at nearly 70% of GDP, and declined to less than 60% of GDP during Clinton's second term. The debt grew again to more than 80% of GDP during the George W. Bush administration and has continued to rise under President Obama to nearly 100% of GDP"...........READ MORE
In 1917, as the U.S. entered World War I, Congress authorized the Treasury to issue long-term bonds to finance the war, but placed a limit on the amount of debt that the government could issue. That limit, known as the debt ceiling, has been raised repeatedly -- and lowered a few times -- since then. Congress often balks at raising the limit, and the confrontations are always worse when control of the government is divided between the two parties. The limit currently stands at $14.3 trillion dollars -- a ceiling that the government reached in May.
How much has the debt grown in recent years?
Economists usually measure the debt as a percentage of the overall size of the economy (the gross domestic product). The debt peaked at more than 120% of GDP at the end of World War II, then declined steadily and hit a low point of slightly more than one-third of GDP at the end of the Jimmy Carteradministration. The debt then grew rapidly during the Ronald Reagan and George H.W. Bush administrations, peaked during Bill Clinton's first term at nearly 70% of GDP, and declined to less than 60% of GDP during Clinton's second term. The debt grew again to more than 80% of GDP during the George W. Bush administration and has continued to rise under President Obama to nearly 100% of GDP"...........READ MORE
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