Warren Buffet quote about the Debt Ceiling
“To tie [the debt ceiling] to … breaking the promises of the United States government to people all over the world as well as its own citizens, just makes no sense. So it ought to be banned as a weapon. It should be like nuclear bombs, basically too horrible to use.”
— Warren Buffett, in an interview with FORTUNE, posted Oct. 4, 2013
The debt ceiling is like a credit limit for the United States government. It's the maximum amount of money the government is allowed to borrow to pay for things like military operations, healthcare, and other important programs. Congress sets this limit, and it has to be increased periodically so that the government can keep borrowing money to cover its expenses.
If Congress doesn't increase the debt ceiling, the U.S. government may not be able to borrow enough money to pay for its financial obligations, including paying salaries to government employees, Social Security benefits, and interest on the national debt. This could lead to a government shutdown or even a default on its debt, which would have serious consequences for the economy and financial markets.