Commentary
House Democrats refuse spending cuts to keep the United States out of default.
Treasury Secretary Janet Yellen confirmed on Jan. 19 that the United States has reached its debt ceiling of $31.4 trillion and that the government would have to take extraordinary measures to avoid slipping into default. House Democrats blame the Republicans for not raising the debt ceiling, which Republicans agreed to do if Democrats would cut spending.
The debt ceiling is the legislative limit set by Congress on the amount that the U.S. government can borrow by issuing bonds. It does not directly limit government spending as the debt ceiling allows the government to cover expenses already approved by Congress. On the other hand, by refusing to raise the debt ceiling, Republicans hope to convince the government to spend within its means. If the debt ceiling is reached, the Treasury Department must find other means—called extraordinary measures—to cover the government’s expenses. This includes making interest payments to bondholders….