Some people think that this is going to be like when the federal government shutdown in 1994. For those who remember it, it meant things like national parks were closed, several agencies were shutdown, and many federal workers got an unpaid layoff. While those things had a negative impact on the economy, a failure . . . → Read More: What Happens if the U.S. goes into default?
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The story of taxation usually goes like this: You earn your dollars, then give some portion of it to the government. The government then takes your money and buys tanks, builds roads, and gives food to the poor. For local and state governments, that is a true story. However, for the federal government, which . . . → Read More: The Purpose of Taxes As I discussed yesterday, the debt limit is the congressional limitation on the amount of bonds that the U.S. treasury can have outstanding at a given time. Two significant things happened in the 1970s that made the debt limit obsolete. One is the Congressional Budget and Impoundment Control Act of 1974. It formalized the . . . → Read More: The Debt Limit is Obsolete The U.S. debt ceiling is, as this CNN Money article describes it, “The legal cap on how much the government can borrow”. That’s what it means in layman’s terms, but where does it come from? Why does it exist? How can it be changed? The phrase “debt ceiling” appears to be a media created term. . . . → Read More: What is the U.S. debt ceiling? |
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