The debt ceiling is the legal limit on the amount of debt that a government can borrow. When the debt ceiling is reached, the government cannot borrow any more money unless the ceiling is raised. The debt ceiling is typically set by law and must be approved by both houses of Congress. The debt ceiling is not a limit on spending, but rather a limit on borrowing. The government can still spend money that it has already borrowed, even if it has reached the debt ceiling.
The debt ceiling is an important tool for controlling government spending. By limiting the amount of money that the government can borrow, the debt ceiling helps to ensure that the government does not spend more money than it takes in. This helps to keep the government’s finances in order and prevents the government from accumulating too much debt. The debt ceiling also has important benefits for the economy. By limiting government borrowing, the debt ceiling helps to keep interest rates low and prevents inflation. This helps to create a stable economic environment that is conducive to business growth and job creation.