The U.S. Treasury warned that it has “a very limited cash supply” – that will be quickly depleted after Oct. 18. The Senate agreed to increase the debt ceiling by $480 billion to prevent default till early December. Both parties are still at an impasse.
With the impending date fast approaching, Biden is nervous about the debt. He has issued a stark warning that if Senate Republicans continue to block Democratic efforts to raise the federal debt ceiling, the U.S. could default on its debt for the first time in history. Administration officials and outside experts say this would lead to an economic disaster.
So is there any benefit to continue to increase the national debt? How did such a huge debt come about? What is the difference between the current national debt and the previous one?