The Debt Ceiling Explained: Why You Should Care

The debt ceiling refers to the maximum amount of debt that a government can legally borrow. When the debt ceiling is reached, the government cannot borrow more money, which can lead to challenges in meeting financial obligations and disrupt government services. It also affects economic stability, financial markets, credit ratings, and highlights long-term fiscal health. Paying attention to the debt ceiling is important for responsible fiscal management and sustainable economic growth.

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