![]() ![]() ![]() ![]() To borrow money, the US treasury issues securities, like US government bonds, that it will eventually pay back with interest. The deficit left at the end of the year ultimately gets tacked on to the country’s total debt. This leaves the government with a deficit, which has ranged from $400bn to $3tn each year over the last decade. The debt ceiling is the limit on the amount of money the US government can borrow to pay for services, such as social security, Medicare and the military.Įach year, the government takes in revenue from taxes and other streams, such as customs duties, but ultimately spends more than it takes in. As details of the deal begin to come to light, here is a quick guide on the debt ceiling and what it means for the US government and people across the country: What is the debt ceiling? ![]()
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