Most of you have heard of the debt ceiling. But, what is it?
Back in 1917, a law was passed that limited the debt the federal government could carry. (This was designed to protect our country from over spending.) The debt ceiling has been increased over the years. Our national debt continues to grow, because we are spending more money than we have. Soon, we will reach the debt ceiling. If we do, there could be deep economic consequences worldwide.
The politicians in Washington are scrambling to come up with a solution. Some want to increase the debt ceiling. Some want to increase taxes to raise more money. Some want to cut spending to save money. And some are promoting a cut-cap-balance proposal that would cut more than $110 billion in 2012, cap future spending and require congressional passage of a balanced-budget amendment to the Constitution that would be sent to states for the lengthy ratification process.
If we do nothing, we will bankrupt our country. What would you do?
Additional reading:
http://www.npr.org/blogs/money/2011/04/12/135314575/the-debt-ceiling-explained
http://en.wikipedia.org/wiki/United_States_public_debt
http://www.foxnews.com/politics/2011/07/16/gop-voters-as-divided-as-candidates-on-debt-limit-debate/
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