Why the US is always hitting a 'debt ceiling'

Is the huge US national debt a problem?

Nearly every year, America seems to teeter on the edge of a crisis as the national debt comes dangerously close to hitting the “debt ceiling” and the President and Congress fight over raising it. The “debt ceiling” is really just a limit on how much debt the country can take on. While the US isn’t the only country to have one, it is the only country to have legislation that regularly puts it on the brink of economic disaster.

The current US debt is nearing $29 trillion. That's a trillion with a T. Is that… too much? And who does it affect?

[The_Horizon]

its like constantly hitting the snooze button

[FinancialShinanigan]

Don't cross this line!
Okay you crossed it but don't cross THIS line!
You did it again but don't cross THIS line!
* and repeat *

[tonysilke]

Since the debt crisis could unleash carnage on the stock market leading to economic downturns. We need to be prepared for potential market volatility. how can I secure my $600K stock portfolio against declining?

[ANNAZNG]

Remember kids: Owe the bank $1000 dollars and YOU have a problem. Owe the bank and THE BANK has a problem. Works like a charm :D

[Brownyman]

"By the time it becomes a real problem I'll be dead" is humanity's greatest problem of all.

[nebuchadnear]

If you have a debt ceiling and each time you reach it you raise the ceiling instead of figuring out ways to cut spending or increase revenue, is that a debt ceiling? Or is it some imaginary object that wastes time and money in discussions in congress

[felixf]

The debt ceiling is a perfect representation of our government. Just kick the can down the road and make a big deal out of it but fix nothing.

[nicolasbenson]

The U.S. economy relies on ongoing credit and debt generation for sustenance. The Federal Reserve is expected to increase the money supply, leading to further debt accumulation for the average American. Meanwhile, foreign nations continue to desire the U.S. dollar, despite their own economies facing significant challenges, some even worse than that of the U.S. This situation raises concerns about who will ultimately bear the consequences of these economic dynamics.

[salmay]

I swear the more i know about the US the more I'm weirded out, it's like the US is in a whole other planet of its own

[arheo]

this was a really good video because i fully did not understand how the national debt worked untill this

[Skybar]

Imagine how much money the US would of saved over the 20 years it wasted in Iraq/Afganistan

[FindTheFun]

I love how literally no one knows how our global financial system works anymore. That definitely won't ever become a problem.

[Samppwli]

I like how one of the analyst just said "this would work with functioning congress"

[hhydar]

USA *every year* :
"Oh we are about to touch debt ceiling"
Denmark:
"Lemme draw the line once and for all"

[dunglaovoitao]

The real issue, just like the video has concluded, is the increasingly dysfunctional US government. Another economic recession will eventually come, and the US can still recover as it did so many times in the past. But the polarization in the US politics is a turmoil which can lead to a total downfall.

[kimyoung]

Some economists have projected that both the U.S. and parts of Europe could slip into a recession for a portion of 2023. A global recession, defined as a contraction in annual global per capita income, is more rare because China and emerging markets often grow faster than more developed economies. Essentially the world economy is considered to be in recession if economic growth falls behind population growth.

[Thebreakdownshow]

Because the ceiling can't hold us. - Macklemore

[benkoskinen]

This is basically Goodhart’s Law: when a measure becomes a target, it cease to be a good measure.

[.]

This is like postponing the deadline for a homework assignment.

[Aznprada]

It's amazing how many people don't understand this.

This should be basic training in schools but its not.