Debt ceiling in the United States: how it could affect me

Americans woke up to the news that the Treasury Department would take “extraordinary measures” to avoid crossing the debt ceiling; However, after the news, many wonder how does the debt ceiling affect me.

The first thing to know is that this morning, Treasury Secretary Janet Yellen informed Congress, through a letter, that “extraordinary measures” would be implemented. to avoid crossing the debt ceiling.

The situation described by Yellen seems critical, since the government would be at risk of defaulting if the measures, which are temporary until June 5, were not taken immediately.

After the announcement, a question arose among Americans about how the debt ceiling affects me, so here we give you some answers to those questions.

The most recent precedent in which the United States exceeded the debt ceiling was in 2011, with damage to the economy that took months to recover.

How does the debt ceiling affect me?

Talking about a government’s debt ceiling seems like something far away that has little to do with us; However this is not entirely true.

The fact that the United States crosses the debt ceiling may have consequences for both the government and all residents from the country.

Although the “extraordinary actions” that the Treasury Department announced can alleviate the potential crisis for a few months with money that will serve as a cushion for them to continue complying with national commitments; Nevertheless, more than that will be necessary to avoid a sensitive impact.

To understand it, without these funds, the government simply would not have money to pay, for example, monthly Social Security checks or health programs like Medicare.

But they would not be the only affected areas, since payments for veterans and government workers they would also be threatened, as well as that of the active military.

As if this weren’t enough, some government agencies deemed non-essential they would have to close to reduce spending from the federal government and would remain that way until Congress reaches an agreement to increase the debt ceiling.

Finally, to understand why this could happen, it is necessary to know that the debt ceiling is the limit of money that the government can borrow and, to increase it, Congress must reach a bipartisan agreement that authorizes an increase.

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