{"id":24648,"date":"2021-10-09T09:41:02","date_gmt":"2021-10-09T13:41:02","guid":{"rendered":"https:\/\/theredphoenixapl.org\/?p=24648"},"modified":"2021-10-09T09:41:02","modified_gmt":"2021-10-09T13:41:02","slug":"primer-the-debt-ceiling-its-history-and-its-consequences-if-ignored","status":"publish","type":"post","link":"https:\/\/redphoenix.news\/es\/2021\/10\/primer-the-debt-ceiling-its-history-and-its-consequences-if-ignored\/","title":{"rendered":"Primer: The Debt Ceiling, Its History, and Its Consequences If Ignored"},"content":{"rendered":"<figure class=\"wp-block-image aligncenter size-large\"><a href=\"https:\/\/i0.wp.com\/redphoenixnews.com\/wp-content\/uploads\/2021\/10\/615afe858d803.image_.jpg?ssl=1\"><img data-recalc-dims=\"1\" decoding=\"async\" loading=\"lazy\" src=\"https:\/\/i0.wp.com\/redphoenixnews.com\/wp-content\/uploads\/2021\/10\/615afe858d803.image_.jpg?ssl=1\" alt=\"\" class=\"wp-image-24649\" \/><\/a><\/figure>\n\n\n\n<p class=\"has-small-font-size\"><strong>Andrew E. is an economics student in Massachusetts, and member of the American Party of Labor.<\/strong><\/p>\n\n\n\n<p>The debt ceiling is, in essence, a limit for the U.S. Department of the Treasury\u2019s borrowing agreed upon by the U.S. Congress. Before the debt ceiling, congress would have to authorize every individual instance of borrowing the Treasury did. As the United States was preparing to get involved in World War I, Congress decided that it would be best to authorize the Treasury to borrow on its own, so long as they don\u2019t go above a that agreed limit, or ceiling. The debt ceiling originally separated between types of borrowing, such as bonds or bills, but then later in 1939, the ceiling was expanded to all means of the Treasury\u2019s borrowing. So the debt ceiling as we currently know it is born.<\/p>\n\n\n\n<p>Recently, the Treasury had announced that they\u2019ve been using \u201cextraordinary measures\u201d to keep borrowing below that limit, and that their figurative tightrope would snap on October 18<sup>el<\/sup>. This means that on the 18<sup>el<\/sup>, the Treasury will have to start prioritizing certain payments, and may be unable to fulfill some previously agreed-upon payments and obligations, which could include food assistance, social security, and veteran\u2019s benefits, all of which are part of our already lack-luster means of assisting the working class. The Treasury will have to make these choices, and eventually totally abandon the proletariat of the U.S., unless Congress votes to raise the previously mentioned debt ceiling.<\/p>\n\n\n\n<p>Luckily, Senate leaders have agreed to vote on an extremely short-term debt ceiling increase. This deal, which raises the ceiling by $480 billion, would bide time for the Treasury to make payments, until a shaky estimate of December 3<sup>rd<\/sup>. This is because Democrats want to focus on Biden\u2019s \u2018Build Back Better\u2019 agenda (instead of ensuring the security of the downtrodden by <em>substantially<\/em> raising the debt ceiling), and it is assumed that Republican leaders don\u2019t want to be blamed for yet another financial crisis.<\/p>\n\n\n\n<p>Worry lies in the fact that a deadline of December 3<sup>rd<\/sup> could overlap with discussions over budget resolutions, which in recent years have been quite contentious. Gridlock over the previous budget resolutions famously impacted 800,000 federal employees, putting many out of jobs. If the U.S. Congress similarly comes to a stalemate over the debt ceiling, it would spell a frankly apocalyptic reality for many U.S. proletarians, as Social Security, paychecks to federal employees, veteran\u2019s benefits, Child Tax Credits, and food assistance could all come to a screeching halt.<\/p>","protected":false},"excerpt":{"rendered":"<p>Andrew E. is an economics student in Massachusetts, and member of the American Party of Labor. The debt ceiling is, in essence, a limit for..<\/p>","protected":false},"author":1,"featured_media":24649,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[152,97],"tags":[],"class_list":["post-24648","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-us-news"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/redphoenix.news\/es\/wp-json\/wp\/v2\/posts\/24648","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/redphoenix.news\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/redphoenix.news\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/redphoenix.news\/es\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/redphoenix.news\/es\/wp-json\/wp\/v2\/comments?post=24648"}],"version-history":[{"count":0,"href":"https:\/\/redphoenix.news\/es\/wp-json\/wp\/v2\/posts\/24648\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/redphoenix.news\/es\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/redphoenix.news\/es\/wp-json\/wp\/v2\/media?parent=24648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/redphoenix.news\/es\/wp-json\/wp\/v2\/categories?post=24648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/redphoenix.news\/es\/wp-json\/wp\/v2\/tags?post=24648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}