https://issuesinsights.com/2023/05/15/everything-youve-heard-about-the-debt-limit-is-wrong/
Contrary to widespread claims that the U.S. government will default on its debt if Congress doesn’t raise the debt limit, federal law and the Constitution require the Treasury to pay the debt, and it has ample tax revenues to do this.
Nor would Social Security benefits be affected by a debt limit stalemate unless President Joe Biden illegally diverts Social Security revenues to other programs.
The debt limit is a valuable tool for transparency, accountability, and for giving voters an ongoing say in how their money is spent.
The Debt Situation
The U.S. national debt has grown by $8.2 trillion since 2020 and is now $31.5 trillion. This is an average debt of $239,763 for every home in the nation.
Those figures don’t account for the government’s fiscal liabilities and unfunded obligations. When these are included — as the government requires in the financial statements of publicly traded corporations — the total federal shortfall is $135 trillion. This is an average burden of more than $1 million per household.
In addition, Biden has proposed a budget framework that will allow the national debt to grow over the next decade by $19.8 trillion, according to his own administration’s projections.
Such levels of red ink have perilous consequences for nearly everyone, like higher inflation, wage stagnation, investment losses, and lower standards of living.