Debt Ceiling Crisis 2021

The debt ceiling has been a problematic part of US politics for decades. When there is a shortage of income generated by the federal government, often, an increase to the debt ceiling is proposed by the sitting president to ensure every agency functions.

The debt ceiling crisis that happened in recent years didn’t lead to a government shutdown, however. President Biden signed the funding bill and the government did manage to fund itself without causing a shutdown. While it may have been averted, for now, there needs to be a permanent solution to the debt ceiling and what it brings. Congress is set to come up with ways to ensure that there won’t be another debt ceiling crisis in the upcoming years.

What happens to the government shutdown?

Because the funding legislation is passed, there won’t be a government shutdown. The government can only shut down when it fails to fund itself and it didn’t happen this time luckily. Considering the economic burden of the COVID-19 and inflated prices with not much raise seen on paychecks, a government shutdown could lead to serious problems.

These were something that the federal government managed to see and averted the government shutdown despite Democrats and Republicans not agreeing on the issues with the debt ceiling,

Because there is still the possibility of the government shutting down due to disagreements on the debt ceiling, for the first time ever in US political history, the Biden administration is set to work on a plan to completely eliminate the risk of the government shutdown lead by debt ceiling crisis.

As for how that’s going to happen, we’ll have to wait for the upcoming days to arrive. It’s expected that before the new year begins, the details of this will emerge. Until then, debt ceiling is going to be a debated topic in politics.

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