United States debt ceiling

The United States debt ceiling is a limit that tells how much money the United States government can borrow at any given time. It is set by the United States Congress.  Its basic purpose is to try to lower the national debt of the United States or prevent excessive borrowing. The debt ceiling was created in 1917 under the Second Liberty Bond Act.D. Andrew Austin, et al., Debt Limit: History and Recent Increases (Washington, DC: Congressional Research Service, 2011), p. 2 It was designed to fund the US as it entered World War I. Before the creation of the debt ceiling, the president determined how much debt could be incurred in a given time. This was changed in 1917 to prevent the president from having too much borrowing power. The debt ceiling in 2011 was 14.3 trillion dollars.Pierre Lemieux, The Public Debt Problem: A Comprehensive Guide (Basingstoke: Palgrave Macmillan, 2013), p. 9

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Category:Economy of the United States